Copying and distributing are prohibited without permission of the publisher
Vodafone sells stake in China Mobile
08 September 2010
Vodafone has sold its holding in China Mobile, worth $6.5bn and plans to sell other minority holdings
Read more:
Vodafone
China Mobile
UBS
Goldman Sachs
Morgan Stanley
Polkomtel
Vodafone has sold its 3.2% shareholding in China Mobile for $6.5 billion. The U.K.-based operator plans to continue its commercial and technology cooperation with the Chinese company, in spite of the divestment.
The company is planning to return 70% of proceeds from sale to shareholders in the form of a share buyback and use the remaining to reduce the group’s net debt. Vodafone initially bought a 2.18% stake in China Mobile in 2000 and increased its holding to 3.2% in 2002 for a total of $3.25 billion.
The company appointed UBS, Goldman Sachs and Morgan Stanley as lead managers and bookrunners for offering.
Vodafone is also looking to sell its 24.4% stake in Polish mobile operator Polkomtel. It may also divest its 44% stake in French telecom operator SFR, in which media conglomerate Vivendi has a 56% controlling stake. GTB