Major shareholder change at Vodafone: e& Group sells its shares to Vega for $5.95 billion

The United Arab Emirates-based telecommunications company e&& Group has announced that it has reached an agreement to sell its entire stake in the British telecom giant Vodafone. In a transaction valued at approximately $5.95 billion, the shares will be transferred to Vega, an investment firm controlled by the family of French billionaire Xavier Niel.

The approximately 3.95 billion Vodafone shares subject to the sale represent 16.21% of the company's issued share capital and 17.13% of its voting rights. Upon completion of the transaction, Vega is expected to become the largest shareholder in Vodafone.

SHARES VALUED AT A PREMIUM

Under the terms of the agreement, Vodafone shares were priced at 112.5 pence. This amount consists of a cash payment of approximately 110.5 pence and a final dividend of 2.02 pence. The sale price represents a premium of approximately 13% over Vodafone's share price prior to the agreement.

e&& Group reported that it expects to generate net cash proceeds of approximately 4.7 billion UAE dirhams, or $1.3 billion, following the transaction. It was stated that the shares will be transferred to three different financial institutions via a block trade method until regulatory approvals are finalized.

Following the sale agreement, e&& Group has also terminated its relationship agreement with Vodafone. With the resignation of the member representing the company on the Vodafone board of directors, e&& Group's investment and management ties with Vodafone have come to an end.