Vodafone Sells Its Stake In China Mobile

Vodafone has sold its stake in China Mobile for almost double the amount it paid to acquire it 10 years ago.

The UK-based mobile network provider has sold its 3.2 per cent share in China's largest mobile network carrier China Mobile for $6.5 billion, Bloomberg has reported.

Vodafone sold 643 million shares, one of the biggest non-strategic disinvestments made by the company, at a discount of 3.4 per cent on the market price.

"Today's transaction achieves a near doubling of Vodafone's original investment in China Mobile and combines our stated portfolio strategy with ongoing co-operation with China's leading telecommunications company," said Vittorio Colao, chief executive officer of Vodafone.

According to Colao, Vodafone plans to use nearly 70 per cent of the $6.5 billion to buy its own shares back from shareholders, while 30 per cent will be used to help pay its debt.

The company has not revealed any further details about the deal, and to whom it has sold the shares to.

Vodafone and China Mobile will continue to work together for roaming, network roadmap development, international customers and green technology.