Vodafone's largest stake passes to French billionaire

A significant change in ownership has taken place at Vodafone, one of Europe's leading telecom groups. Vega, an investment company linked to French billionaire Xavier Niel, has acquired the 16 percent stake in Vodafone held by the United Arab Emirates-based e& group for 4.4 billion pounds. With this move, Xavier Niel has earned the title of the company's largest shareholder.

The share purchase was executed at a price of 110 pence per share, which is 15 percent above the closing value of Vodafone shares traded on the London Stock Exchange on Thursday. Following the public announcement of the deal, Vodafone shares rose by approximately 13 percent at the opening of trading on Friday.

The transaction requires regulatory approval to be officially completed. During the sale process, the transferred shares will be held in escrow by three separate financial institutions. Once the shares are transferred to their new owner, the e& group will relinquish its seat on the Vodafone board of directors. The e& management stated that the decision to sell was part of their strategy to focus on their core business lines and cash conversion.

With this acquisition in Vodafone, Xavier Niel has returned to the company as a long-term investor. Niel had previously bought and sold a 2.5 percent stake in the company through Atlas Investissement in 2022. Regarding the matter, he stated, "We believe that Vodafone can generate sustainable growth and strong cash flow in the long term. We are ready to contribute to the company's future success with our operational expertise."

Vodafone management announced that they welcome Niel and his family as a long-term and supportive investor.

French billionaire Niel has a very broad footprint in the telecommunications sector. In addition to having significant investments in France, Italy, Poland, and Ireland, Niel is also a leading shareholder in Millicom, which operates in Latin America, and the Swedish company Tele2. His son, Jules Niel, continues to serve as a board member at Millicom.

This development comes at a time when restructuring plans led by Vodafone CEO Margherita Della Valle are ongoing. Over the past two years, the company has accelerated its strategy of focusing on core markets while divesting from underperforming divisions. Having sold its operations in Spain and Italy in 2024 and 2025, Vodafone also shared its intention to divest its 50 percent stake in the Netherlands this year. Furthermore, under a plan announced in May, it decided to acquire the entirety of the Vodafone Three partnership in the United Kingdom for 4.3 billion pounds.

All these steps signal that a new era has begun for the future of Vodafone.

News Source: 12punto