Vodafone has sold its 3.2 per cent shareholding (642.9m shares) in China Mobile by way of an accelerated bookbuilt offering. The sale netted the network operator $6.5bn (£4.2bn) in cash. The company says that approximately 70 per cent of the net proceeds will be returned to shareholders by way of a share buyback, with the remainder used to reduce the Group’s net debt.

Vodafone says that since it made its original investment in China Mobile in 2000, both companies have enjoyed a strong relationship and cooperated closely in many areas of business and in the development of the mobile industry. It says the two companies will continue this cooperation in areas such as roaming, network roadmap development, multinational customers and green technology.

“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,” says Vodafone chief executive, Vittorio Colao.