TLDR
- Vodafone (VOD) stock surged more than 12% in London on Friday, hitting 110.10 pence — its highest level since June 19
- UAE telecom operator e& agreed to sell its entire 16.3% stake in Vodafone to Xavier Niel’s Vega vehicle for $5.95 billion
- The deal prices VOD stock at 112.5 pence, a 13–15% premium to the previous close of 97.76 pence
- Xavier Niel will become Vodafone’s largest shareholder once the transaction closes and regulatory approvals come through
- Morgan Stanley said Niel’s telecom experience could make him a supportive long-term investor, with investor attention now turning to Vodafone’s Germany operations
Vodafone (VOD) stock surged more than 12% in London trading on Friday, hitting 110.10 pence — its highest close since June 19.
Vodafone Group Public Limited Company, VOD
The jump came after UAE telecom operator e& Group confirmed it had agreed to sell its entire 16.3% stake in Vodafone for approximately $5.95 billion.
The buyer is Vega, an investment vehicle wholly owned by the family of French telecoms entrepreneur Xavier Niel.
The deal prices VOD stock at 112.5 pence per unit, a 13% to 15% premium to the previous close of around 97.76 pence.
Vega will acquire roughly 16.2% of Vodafone, making Niel its largest shareholder once the transaction closes and receives necessary approvals.
e& first bought a 9.8% position in Vodafone in 2022 for $4.4 billion and gradually built that up before selling the full holding at a gain.
Xavier Niel Takes the Top Spot
Niel called Vodafone a “compelling investment opportunity,” pointing to its quality assets, strong brands, and diversified geographic footprint.
He said the company is well-placed to unlock value across its European and African operations as a “simpler, more focused business.”
Niel already has telecom investments across nine European countries through his Iliad group, with around 50 million active subscribers and over €10 billion in revenue.
He attempted to acquire Vodafone’s Italian business on two separate occasions — both times was turned away.
Morgan Stanley said the transaction brings Niel in as Vodafone’s new anchor shareholder.
The bank noted his telecom experience and limited overlap with Vodafone’s existing footprint, saying it could make him a supportive long-term investor.
Analysts will now focus on how involved Niel and his team become in Vodafone’s day-to-day operations, particularly in Germany, where Vodafone has consistently trailed market leader Deutsche Telekom.
e& Steps Back After Four Years
e& said the sale reflects the “natural evolution” of its priorities, looking to focus on core businesses while unlocking cash from the investment.
CCS Insight analyst Kester Mann called it a surprising turnaround for e&, formerly known as Etisalat, which had positioned itself as an emerging global telecoms and technology player.
Mann said the move signals the Middle Eastern operator is stepping back from that global ambition and refocusing on its home markets.
Despite the full exit, e& confirmed its strategic relationship with Vodafone will continue across procurement, technology, enterprise services, and digital infrastructure.
Vodafone welcomed the move, saying it knows the Niel family group well and looks forward to engaging with them as a “supportive, long-term shareholder.”
Vodafone has already exited Spain and Italy under CEO Margherita Della Valle, who took over in 2023, and completed its merger with Three UK, creating Britain’s largest mobile operator.
The broader FTSE 100 was little changed on Friday, with Vodafone’s 12%-plus gain well outperforming the index.
e& stock dropped 1.12% on the news.
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