French telecoms entrepreneur Xavier Niel has agreed to buy a 16.2% stake in Vodafone from Emirates Telecommunications Group (e&), making him the British company’s largest shareholder.
The deal
- Stake: 16.21% of Vodafone Group
- Price: about US$5.95 billion (roughly €5.2 billion)
- Per share: 112.5 pence, made up of 110.5 pence in cash plus a 2.02 pence dividend
- Buyer: Vega, an investment vehicle created by Niel
Vega says the shares will give it around 16.2% of Vodafone’s capital and 17.13% of the voting rights.
Who is Xavier Niel
Niel founded the French operator Iliad, known for its Free brand, and has built up a portfolio of telecoms businesses across Europe and Latin America, including stakes in Millicom, Salt in Switzerland, Monaco Telecom, Eir in Ireland and Tele2. Together, the companies he controls or has interests in serve around 139 million customers, employ about 45,000 people and generate roughly €24 billion in annual revenue.
Why e& is selling
The Emirati group, whose largest shareholder is the UAE’s sovereign wealth fund, said the sale allows it to realise the value of its investment and focus on its core markets in the Middle East, Africa and Asia.
As part of the change, Vodafone has ended its three-year cooperation agreement with e&, and the Emirati group’s representative has stepped down from the Vodafone board.
No takeover planned
Vega describes the investment as a long-term strategic minority stake and says it does not intend to make an offer for the whole company. Under the UK takeover rules, it is bound by that statement for six months unless Vodafone’s board agrees, a third party makes a bid, or there is a material change in circumstances.
The transaction still requires regulatory approvals. Vega expects to complete it before the end of the year and says it will work constructively with the UK authorities.
Why it matters in Spain
Vodafone sold its Spanish business in 2024, so the deal has no direct effect on Vodafone-branded services in Spain. It does, however, make Niel one of the most influential figures in European telecoms at a time when the industry is pushing for consolidation between operators.
