China Mobile, that country’s dominant cellular carrier, said today it will buy eight provincial networks from its state-owned parent in a $10.2 billion deal that will also increase the stake held by Vodafone.
The deal, which the carrier first signalled in December, will expand Hong Kong and New York-listed China Mobile beyond its current turf in 13 of China's wealthiest coastal provinces and is priced roughly in line with market expectations.
China Mobile will pay US$8.57 billion in cash, shares and a loan from its parent, and assume US$1.63 billion in debt in a deal to be completed by the end of June.
Vodafone will pay $750 million for 236.63 million new China Mobile shares at HK$24.72 each, increasing its strategic stake to 3.27 per cent from 2.18 per cent currently. The deal expands the tie-up between the world's two biggest mobile carriers.
Vodafone shares were up 0.67 per cent at 112.56p today in in London.