UAE-based global technology group Emirates Telecommunications Group Company PJSC (“e&”) has announced that it is selling its entire stake in European and African telecom major Vodafone Group PLC, to Vega, an acquisition vehicle wholly owned by the Niel family group led by French billionaire Xavier Neil. The deal is worth approximately US$ 5.95 billion (AED 21.8 billion).
In a press release, e& revealed that the sale involves the divestment of its entire holding of 3,944,743,685 ordinary shares in Vodafone, representing approximately 16.21 percent of Vodafone’s issued share capital, and 17.13 percent of its total voting rights, for a total consideration of GBp 112.5 per share. This comprises approximately GBp 110.5 per share in cash from the buyer, and Vodafone’s final FY26 dividend of GBp 2.02 per share, to be received on July 30, 2026.
“The shares will be sold simultaneously through off-market block trades to three financial institutions, who will hold the shares until Vega completes regulatory requirements,” explained e&.
Upon completion of the transfer of the shares to the financial institutions, the transaction will generate cash proceeds of approximately US$ 5.95 billion to e&, inclusive of final FY26 dividend. The transaction is expected to deliver a net cash return of approximately US$ 1.3 billion (AED 4.7 billion).
Vega, established solely for the purpose of holding shares in Vodafone, will become the largest shareholder of Vodafone upon the closing of the transaction, after approval of the relevant authorities.
“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,” said Xavier Neil in a statement. “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.”
The sale marks the termination of e&’s Relationship Agreement with Vodafone. In connection with this, e&’s Board representative has stepped down from his position as a non-executive Director of Vodafone.
In a statement responding to the announcement by e&, Vodafone said, “The relationship agreement dated May 11, 2023 between Vodafone and e& has been terminated. Hatem Dowidar, who was appointed to the Board of Vodafone as the nominee director of e&, has resigned from the Board with immediate effect.”
The announcement marks one of the largest divestments by a Middle Eastern telecom operator in recent years. Meanwhile, the Niel family group’s telecom investments and businesses span 26 countries in Europe and Latin America. It has 139 million subscribers, 45,000 employees, €24 billion of annual revenues and more than €9 billion of EBITDAaL. Assets include iliad, Salt, Monaco Telecom, Eir, Tele2 and Millicom, representing significant scale, revenues, network investment and operational expertise.