Vodafone is considering options for its African business Vodacom, which includes a potential minority sale, according to reports.
Bloomberg, which cites people familiar with the matter, said Vodafone is working with advisers to extract more value from its 65% holding in Vodacom Group.
Possible avenues being explored include merging the business with other operators, divesting some assets in specific markets, or selling a stake in the company.
A representative for Vodafone told Bloomberg that “Vodacom is a strong business that is an important part of Vodafone.”
Bloomberg suggests that Vodafone has always seen the African business as a core part of its group, but deliberations suggest it is looking at ways to reduce its some £40bn worth of debt.
The group has already sold some assets in an effort to reduce its debt, including the €1.7bn sale of its Hungarian business and the sale of its stake in Vantage Towers, which raked in €3.2bn.
On Monday, Liberty Global (NASDAQ:LBTYA) disclosed a 4.9% stake in Vodafone but ruled out a full takeover.
Vodafone shares were up 3.7% to 102.9p in mid-morning trading.