UK mobile group Vodafone is close to selling its 3.2% stake in China Mobile for as much as £4bn (US$6.2bn), according to the Sunday Times.
Citing investors, the newspaper explained that the British telco may either offload its stake to a single buyer or…
UK mobile group Vodafone is close to selling its 3.2% stake in China Mobile for as much as £4bn (US$6.2bn), according to the Sunday Times.
Citing investors, the newspaper explained that the British telco may either offload its stake to a single buyer or sell it on the open market. Vittorio Colao, the company’s chief executive, has already approved the deal, according to the report.
In an interview last month, Colao described Vodafone’s minority stakes in overseas companies as “not core”. Proceeds from any sale, he said, could be spent on shareholder dividends and new investments.
This was seen as an effort to calm investors, who publicly lambasted the company’s international expansion strategy as “value destructive” and called for replacement of chairman Sir John Bond.
Bond survived the rebellion, but the investors do seem to have triggered a change in strategy. According to the Sunday Times, Colao now wants to focus on some key markets including Africa, India and Europe.
In contrast, Telefónica is pleased with its own presence in China. Two months ago, the Spanish telco announced it would raise its stake in China Unicom from 8.4% to 10% this year. Unicom owns a 0.88% stake in the Spanish operator.
Vodafone’s other minority stakes are in Verizon Wireless (45%), SFR (44%), Polkomtel (24.4%).
Vodafone declined to comment on the reports.
