Freshfields has advised Vodafone on its US$6.6bn China Mobile stake sale. Cayman Islands firm Ogier, led by corporate partner Nicholas Ward, provided Jersey legal counsel to Vodafone. China Mobile was not represented by outside counsel.
According to the deal, Vodafone will return about 70% of the proceeds to shareholders through a stock repurchase, while the balance will be used to pay debts.
Freshfields’ Hong Kong and London team of lawyers, were led by Ben Spiers (co-head of the firm's telecoms, media, and technology group), Teresa Ko (China managing partner), Will Lawes (financial institutions co-head) and Kenneth Martin (corporate partner). The firm represented Vodafone in 2000 when it paid US$2.5bn for an initial 2.2% stake in China Mobile. In 2002, the stake was increased in 3.2% for US$3.25bn.
The significant increase in the consideration sum indicates the growth of the TMT sector in the mainland. China Mobile, the world’s largest wireless operator by number of subscribers, has also been very active in diversifying its business.
In August this year, China Mobile paid US$5.8bn for stakes in Shanghai Pudong Development Bank. The companies formed a strategic alliance to offer wireless financial services including mobile bank cards and payment services, advised by Haiwen & Partners and Shanghai United Law Firm respectively.
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