Telecoms billionaire Xavier Niel to become Vodafone’s largest shareholder in £4.4bn deal

French telecoms entrepreneur Xavier Niel will become Vodafone’s largest shareholder after agreeing to acquire e&’s entire 16.2 per cent Vodafone for around £4.4 billion.

According to Reuters, the stake is being acquired by Vega, an investment vehicle owned by the Niel family, valuing Vodafone shares at 112.5p each, a 15 per cent premium to the previous closing price. The transaction values the holding at around $5.95 billion. At time of writing there was o official anouncement from Vega.

Reuters says UAE telecoms group e& said the disposal reflects the “natural evolution” of its priorities, allowing it to sharpen its focus on its core businesses while unlocking cash from the investment. The sale is expected to generate a net cash return of around $1.3 billion. 

Niel, founder of French operator Iliad, has long advocated consolidation in the European telecoms market. He previously held a smaller stake in Vodafone and had unsuccessfully attempted to acquire the group’s Italian operations.

Vodafone welcomed Niel as a long-term investor. The transaction follows the operator’s multi-year restructuring under chief executive Margherita Della Valle, which has included the sale of businesses in Spain and Italy, a renewed focus on its core European and African markets, and the completion of its merger with Three UK. 

The acquisition remains subject to regulatory approvals. Pending completion, the shares will be held by three financial institutions.

Source: Reuters