Vodafone Shares Surge After Niel Family Vehicle Agrees £4.4bn Stake Purchase from e&

Shares in Vodafone Group jumped on Friday after Emirates Telecommunications Group (e&) announced it has agreed to sell its entire 16.2% stake in the telecoms giant to Vega, an acquisition vehicle owned by French billionaire Xavier Niel’s family group, in a deal worth approximately £4.4 billion (€5.1 billion).

Under the terms of the agreement, e& will offload its 3,944,743,685 shares — representing 16.21% of Vodafone’s issued share capital and 17.13% of voting rights — at £1.104792 per share. The Emirati telecoms group will also receive Vodafone’s final dividend payment of 2.3625 euro cents, due on 30 July.

The shares will initially be acquired via off-market block trades by financial institutions, with physical settlement expected by year-end once regulatory approvals are secured. Vega said it would shortly engage with the UK government regarding the investment.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Once completed, Vega will become Vodafone’s largest shareholder. The vehicle is wholly financed by Xavier Niel and financial institutions, with no recourse to or impact on the leverage of any other Niel-controlled entities.

Niel, Europe’s leading private telecoms investor through assets including Iliad, Salt, Eir, Tele2 and Millicom, described Vodafone as a “compelling investment opportunity” underpinned by quality assets and strong brands. He said Vega intends to be a long-term, supportive shareholder, pointing to his track record with minority stakes in Tele2 and Millicom as evidence he can help “unlock substantial untapped value” across Vodafone’s European and African operations.

Vega confirmed it does not intend to make a full takeover offer, satisfying UK Takeover Code requirements, though it reserves customary rights to revisit that position.

Vodafone confirmed the news, noting that its relationship agreement with e& has been terminated, and that Hatem Dowidar, e&’s board nominee, has resigned with immediate effect.