Vodafone sells China Mobile stake but will maintain development relationship
Vodafone has agreed to sell its 3.2 per cent stake in China Mobile for £4.3 billion.
The stake has been sold to the banks Goldman Sachs, Morgan Stanley and UBS in an accelerated bookbuilt offering.
Vodafone said it intends to return 70 per cent of the proceeds from the sale to shareholders through a share buyback scheme, with the remainder used to reduce the Group’s debt.
Vodafone said it will continue to work with China Mobile on roaming, network roadmap development, multinational customers and green technologies in the country.
Vodafone chief executive Vittorio Colao said: “Today’s transaction achieves a near doubling of Vodafone’s original investment in China Mobile and combines our stated portfolio strategy with ongoing cooperation with China’s leading telecommunications company.”