Vodafone (VOD) Selling Minority Interests, Returning Capital to Shareholders

Hooray!

Vodafone Group PLC, which has been under pressure to divest minority stakes in scattered foreign operations, late Tuesday said it sold its 3.2% interest in China Mobile Ltd., fetching £4.3 billion, or $6.6 billion, before tax and transaction costs.

The sale is part of Vodafone's strategy to exit non-strategic investments, and thus is likely to be the first of many divestitures. Approximately 70% of the net proceeds of the sale will be returned to shareholders through a share buyback, with the remainder used to reduce company debt, the company said.