Vodafone is selling its 3.2 per cent shareholding in China Mobile for £4.3bn ($6.6bn), in a move that highlights the UK mobile phone group’s determination to dispose of its minority stakes.

Vodafone said on Tuesday that 70 per cent of the proceeds from the sale would be returned to shareholders in the form of a share buyback, with the remainder used to reduce the UK group’s net debt, which stands at £33.3bn.

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Vodafone sells stake in China Mobile
Vodafone has begun cutting its stakes in mobile networks around the world by selling its shareholding in China Mobile for £4.3bn. The company announced last night that it has sold its 3.2% stake in the world’s biggest mobile operator. Around 70% of the proceeds will be returned to shareholders through share buyback.

This is the first act in a drive to cut Vodafone’s “non-strategic” assets and focus on Europe, India and Africa, following pressure from investors. Chief executive Vittorio Colao said the company would still co-operate with China Mobile through network sharing and joint work on green technologies. He added that Vodafone had made a sizeable profit, having paid $3.25bn (£2.11bn) for the stake.
www.guardian.co.uk/business/2010/sep/07/vodafone-china-mobile