Vega, a holding company of French business tycoon Xavier Niel’s family group, has agreed to buy Emirates Telecommunications Group’s (e&) entire 16.21% stake in Vodafone Group.
The shares represent approximately 17.13% of Vodafone’s voting rights. The transaction is worth about £4.4bn ($5.95bn).
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The purchase covers 3.94 billion shares at approximately £1.105 per share. Once regulatory approvals are granted, the deal will make Vega the largest shareholder of Vodafone.
As part of the agreement, e& will also receive a final dividend of €0.023 per share, to be paid by Vodafone on 30 July.
The deal follows e&’s strategic review of its international investments and will bring to an end its relationship agreement with Vodafone, which was signed in May 2023.
In connection with this, e&’s board representative is stepping down as a non-executive director at Vodafone.
The shares will first be acquired through simultaneous off-market block trades to three financial institutions, a step related to Vega’s hedging arrangements.
Physical settlement and transfer of the shares to Vega will occur after regulatory approvals, with completion targeted for the end of the year. The holding company has indicated it will begin engagement with the UK government and work with relevant authorities during the approval process.
Vega’s investment will be fully financed by Xavier Niel and participating financial institutions and will not affect the leverage of other Niel family group entities. The company has been set up solely to hold shares in Vodafone.
Xavier Niel said: “Vodafone is a compelling investment opportunity, underpinned by quality assets, strong brands, leadership positions and a diversified geographic footprint. 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 cash flow generation over the long term and – as an anchor investor based in Europe – we are ready to contribute our deep sector expertise and operational know-how to its future success.”
According to Rule 2.8 of the UK Takeover Code, Vega does not plan a full takeover of Vodafone. However, it reserves the right to reconsider this position if agreed by Vodafone’s board, if a third party announces a firm offer, if Vodafone proposes a Rule 9 waiver or reverse takeover, or if a material change arises as defined by the Takeover Panel.
Xavier Niel’s family group operates fixed, mobile, and converged telecom businesses in 26 countries across Europe and Latin America. Its portfolio includes iliad, Monaco Telecom, Salt, Tele2, Eir, and Millicom, with a total subscriber base of 139 million and a workforce of 45,000.
The group reports annual revenues of €24bn and EBITDAaL of over €9bn.
In May 2026, Vodafone signed a deal worth £4.3bn to take full control of VodafoneThree by acquiring CK Hutchison Group Telecom’s 49% stake in the joint venture. Subject to approval under the UK National Security and Investment Act, this transaction is anticipated to close in H2 2026.
