9/8/2010 10:40:00 AM
Vodafone sells 3.2% stake in China Mobile
Vodafone will sell its entire 3.2% stake in China Mobile for £4.3bn.
The sale will take place through an accelerated bookbuilt offering. Goldman Sachs, Morgan Stanley and UBS are acting as lead managers.
Vodafone will continue to work with China Mobile by developing technology and maintain a commercial relationship.
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.’
Under the leadership of former Vodafone chief executive Arun Sarin the operator expanded into new territories.
However, since the arrival of Vittorio Colao, a new strategy has been implemented. Vodafone is now following a strategy to exit minority investments with less strategic importance.
Vodafone bought its share in China Mobile in two parts in 2000 and 2002 for $3.2bn.