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Vodafone ‘may sell’ China Mobile stake
31 August 2010
Reports suggest Vodafone is considering selling its stake in China Mobile, a deal that could raise $4bn
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China Mobile
Vodafone
SFR
Verizon Wireless
Vivendi
Vodafone is looking to sell its stake in China Mobile to raise over £4 billion. The UK-based mobile phone operator is considering whether to seek a strategic investor for the stake or sell the shares on the Hong Kong stock market, where China Mobile is listed.
The lock-up period for Vodafone’s stake in China Mobile has expired, so the company has the right to decide whether or not to sell the shares, said Rainie Lei, a Hong Kong-based spokeswoman for China Mobile. As of April 30, it held about 3.2% of China Mobile’s outstanding shares.
Vodafone prefers the China sale over disposals of its part-owned assets in France and the US, SFR and Verizon Wireless respectively, as the only likely buyer in those two countries is the controlling shareholder in each, Vivendi and Verizon group, which would depress the likely price. Vodafone, which has a market value of £81 billion, is set to revamp its portfolio of assets to improve its share price. GTB