Feeds

Vodafone gets out of China

Turning a tidy profit on the deal

The Power of One Infographic

Vodafone is planning to raise $4.3bn selling its stake in China Mobile, and will be handing most of the cash to its shareholders.

The deal will be done through an "accelerated bookbuilt" arrangement, backed by some of the more popular investment banks. About a third of the money will be dropped into Vodafone's existing debt, and 70 per cent spent buying back its own shares.

It might seem a strange time to get out of China, but Vodafone, the world's largest mobile operator by revenue, has almost doubled its money since buying the shares in 2000. One can't help wondering if the sell off portends some sort of Chinese expansion for Vodafone - or perhaps China Mobile is the one looking to spread its wings a little.

Vodafone, naturally, said it has enjoyed working with China Mobile over the last decade and it looks forward to remaining friends with the world's largest mobile operator by customers.

The two networks have worked together effectively: among other things the two companies created the Joint Innovation Lab, which spawned the Wireless Application Community that remains the great white hope for operators wanting to get into the application business. Operating in separate territories there was no problem with Vodafone holding shares in China Telecom, but such companies like to have a global presence these days, making cross ownership more difficult than it used to be. ®

The Essential Guide to IT Transformation

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.