en.Wedoany.com Reported - French billionaire Xavier Niel is set to become the largest shareholder of British telecom group Vodafone Group, after UAE telecom group e& (formerly Etisalat) agreed to sell its entire stake in Vodafone for nearly $6 billion.
Vega, an acquisition vehicle wholly owned by the Niel family group, announced it has entered into a binding agreement to acquire approximately 16.2% of shares for about £4.4 billion (approximately $5.91 billion). Upon completion of the transaction, Vega will become Vodafone's largest shareholder. The deal makes Niel, one of the most active dealmakers in the European telecom industry, the largest shareholder of the UK's largest mobile operator. Niel has long advocated for consolidation in Europe's fragmented telecom sector.
Since taking office in 2023, Vodafone CEO Margherita Della Valle has undertaken a major restructuring of the company. The group has exited the Spanish and Italian markets, refocusing its business on Germany, the UK, and Africa, and completed a merger with Three UK, creating the country's largest mobile operator.
"Vodafone represents a highly attractive investment opportunity, underpinned by quality assets, strong brands, leading positions, and a diversified geographic footprint," Niel said in a statement. "As a simpler and more focused business, Vodafone is ready to enter a new phase of growth and is well-positioned to unlock significant untapped value across its European and African operations." Vodafone also welcomed Niel as its largest shareholder in a statement, noting that it recognizes the quality of Vodafone's diversified business and is confident in the company's new chapter of growth.
Vodafone shares rose 12% in early trading on Friday to a high of 110 pence, while e& shares gained about 4.5%. e& said the exit reflects a "natural evolution" of its priorities, namely "a sharper strategic focus on its core business," while realizing capital through the sale.
CCS Insight analyst Kester Mann said the move marks a significant strategic shift for e&. The company first acquired a 9.8% stake in Vodafone for $4.4 billion in 2022 and gradually increased its holding. "This announcement suggests the Middle Eastern company is stepping back from its strategy of becoming a global telecom and technology player and now wants to focus on its core business."
According to a Vega spokesperson, Niel initially purchased a 2.5% stake in Vodafone through a separate entity in 2022, but that stake has since been sold. He also made two attempts in previous years to acquire Vodafone's Italian business, both of which were rejected. The billionaire has transformed his Iliad company from a French challenger into a group covering France, Italy, and Poland. Niel is the second French tycoon in two years to target a major UK telecom company. Patrick Drahi's Altice group acquired nearly 25% of BT Group before selling it to Bharti Global two years ago to reduce debt.
