Strategic shareholder Vodafone is considering selling its China Mobile (0941) stake which is worth HK$50 billion, according to British media reports.
"It's a valuable and important investment but the board has a duty ... to maximize value," Vodafone chairman John Bond told shareholders Tuesday.
In a bid to calm discontent over its overseas acquisitions, chief executive Vittorio Colao said last week that Vodafone was looking to sell its minority stakes in overseas firms. The British telco owns 3.2 percent of China Mobile, 45 percent of American operator Verizon Mobile and 44 percent of France's SFR.
China Mobile's shares fell 0.6 percent to close at HK$78.60 yesterday. An analyst expects Vodafone's potential disposal to have a limited effect on the mainland operator's share price, saying "3 percent appears substantial in absolute dollar amount, but the key is to whom [Vodafone] will sell its stake."
He said Vodafone is more likely to sell to other overseas mobile operators, or a number of institutional investors, instead of offloading its stake in the market.
China Mobile's shares have trailed the market, but the analyst does not think it is a bad time to sell as long as Vodafone can find better investment overseas.
He noted the growth of mainland mobile operators has slowed.
Separately, China Mobile and rival China Unicom (0762) have met with the National Telecommunications Commission of Thailand regarding the auction of a third-generation mobile phone network license, Reuters reported.