Vodafone jumps as Xavier Niel family buys 16.2% stake

Vodafone shares jumped nearly 13% on Friday after UAE telecom operator e& agreed to sell its roughly 16.2% stake in the British group to Vega, an investment vehicle wholly owned by the family of French billionaire Xavier Niel. The transaction values Vodafone shares at 112.5 pence each, a 15% premium to the previous close of 97.76 pence.

Under the binding agreement, e& will transfer the stake initially through off‑market block trades to three financial institutions. Vega will complete the purchase once it secures the necessary regulatory approvals. e&, formerly known as Etisalat, said the disposal will generate a net cash return of about $1.3 billion and reflects the company’s decision to concentrate on its core businesses.

Vega is wholly owned by the family group of Xavier Niel, the founder of French operator Iliad, who has telecom investments across several European markets and interests in the media sector. Niel first took a small position in Vodafone in 2022 and has since increased his exposure through family-owned vehicles. Once the deal is finalised, Vega will become Vodafone’s largest shareholder.

In a statement, Niel described Vodafone as a compelling investment with quality assets, strong brands, leadership positions and a diversified geographic footprint. He added that, as a simpler and more focused business, Vodafone is ready for a new phase of growth and is well placed to realise value across its European and African operations.

CCS Insight analyst Kester Mann commented that the sale marks a reversal of e&’s earlier strategy of building a global telecom and technology platform; e& initially acquired a 9.8% stake in Vodafone in 2022 and later expanded its holding to about 16.2%.

The transaction comes after Vodafone’s management has spent the past two years reshaping the group under Chief Executive Margherita Della Valle. Since taking the role in 2023, Della Valle has overseen exits from Spain and Italy, a tightened focus on markets including Germany, the UK and Africa, and the merger of Vodafone UK with Three UK to form Britain’s largest mobile operator.

The acquisition by Vega follows other recent large investments in European telecom companies by prominent investors and adds to the list of significant shareholdings in the sector.