Vodafone set to sell stakein China

Investors expect the deal to be approved next month, ahead of Vodafone’s strategy update in November. The plan has already been approved by the company chief executive, Vittorio Colao, said a Sunday newspaper.

The company must decide whether to find a strategic investor for the stake or to sell the shares on the Hong Kong stock market, where China Mobile is listed.

Vodafone first invested in China Mobile, which has more than 554 million customers, compared to Vodafone’s 347 million customers, in 2000.

The sale is one of a number of disposals Vodafone is rumoured to be considering to appease investors who believe it needs more discipline as it starts a retreat from sprawling international expansion.

The strategy review follows investor complaints that Vodafone’s position of owning assets it does not control has produced a discount between the shares and sum of the parts.

Vodafone reported second quarter figures last month revealing that service revenues had grown for the first time since the global recession hit.