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Wednesday, September 8, 2010

Vodafone to sell its share of China Mobile

VodafoneVodafone says it's going to sell its entire 3.2% interest in China Mobile Limited, which will raise around £4.3 billion before costs. (That's almost twice what Vodafone paid for the original share back in 2000). Approximately 70% of the net proceeds will be returned to shareholders through a share buyback; the remainder will be used to reduce the Group’s debt.

Vittorio Colao, Chief Executive of Vodafone, 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."

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