French billionaire Xavier Niel’s investment vehicle, Vega, acquired a 16.2% stake in Vodafone from UAE telecom group e& for approximately $5.95 billion, ending e&'s strategic cooperation with the UK telecom giant [1, 2, 3, 4, 5]. The stake represents about 16.2% of Vodafone’s shares, making Vega the company’s largest shareholder following the transaction [2, 3, 4, 5].
The sale price was 112.5 pence per Vodafone share, representing a 15% premium over the previous closing price, reflecting strong investor interest [1, 2, 5]. Following the announcement of the deal on July 10, Vodafone shares surged as much as 14% intraday on the London Stock Exchange [4].
E&’s exit marks a strategic shift to refocus on core markets in the Middle East, Africa, and Asia while unlocking capital from non-core investments [1, 5]. The divestment ended e&'s board representation at Vodafone, with its representative stepping down after the sale [1, 5].
Vega, led by Niel, intends to be a long-term minority shareholder. Niel said, "As a simpler, more focused business, Vodafone is ready for a new phase of growth and is well placed to unlock substantial untapped value across its European and African operations. We are confident Vodafone can deliver sustainable growth and strong cashflow generation over the long term and – as an anchor investor based in Europe – we are ready to contribute our deep sector expertise and operational knowhow to its future success" [2].
Vodafone has recently restructured by selling its Italian and Spanish units and merging with Three UK, concentrating on European and African markets [2]. Niel, founder of French telecom Iliad and estimated to have a net worth of $15.5 billion, has a track record of active shareholder involvement in telecom [2, 3].
The deal finalizes e&'s exit and sets the stage for Vega’s influential role in Vodafone’s governance and strategy in the coming years [1, 2].
