French telecoms billionaire Xavier Niel has become the largest shareholder in Vodafone Group after agreeing to acquire a 16.2% stake from Emirates Telecommunications Group (e&) in a deal worth approximately £4.4 billion ($5.95 billion). According to Bloomberg and Financial Times, the acquisition was made through Vega, Niel’s family investment vehicle, and values Vodafone shares at 112.5 pence each, representing a 15% premium to the company’s previous closing price. The announcement sent Vodafone’s shares sharply higher in London trading as investors welcomed the arrival of a new long-term strategic shareholder.
The transaction brings an end to e&’s investment in Vodafone after the UAE telecommunications group completed a strategic review of its international portfolio. Until regulatory approvals are secured, the shares will be transferred through off-market block trades to three financial institutions before ultimately being acquired by Vega. As part of the agreement, e& will relinquish its governance rights in Vodafone, with its board representative stepping down following the sale. The Emirati group said the divestment will generate approximately $1.3 billion in net cash proceeds while allowing it to focus on its core business and future growth opportunities, as reported by MarketScreener.
Niel, founder of French telecommunications company Iliad, described Vodafone as a business with high-quality assets, strong geographic reach, and significant long-term growth potential. He said Vega intends to act as a supportive long-term minority investor, bringing extensive telecommunications expertise while backing Vodafone’s ongoing transformation under Chief Executive Margherita Della Valle. Since taking over the role, Della Valle has restructured the British telecoms giant through asset disposals, operational streamlining, and major investments in network infrastructure, including the completion of the Vodafone–Three UK merger.
For Vodafone, the arrival of Xavier Niel as its largest shareholder represents a significant vote of confidence in the company’s turnaround strategy and future prospects. The Wall Street Journal believes Niel’s investment could strengthen investor confidence, reinforce Vodafone’s strategic direction, and position the company for further consolidation and growth across Europe’s highly competitive telecommunications market.
