Home News Vodafone Gets New Largest Shareholder After £4.4 Billion Stake Purchase

Vodafone Gets New Largest Shareholder After £4.4 Billion Stake Purchase

Vodafone has a new largest shareholder. French billionaire Xavier Niel has agreed to buy a 16.2 per cent stake in the British telecoms group through his family investment vehicle Vega, paying around £4.4 billion for the entire holding previously owned by Emirati group e&. The deal marks one of the biggest ownership shifts at Vodafone in years and sent its shares surging by more than 12 per cent in early trading.

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The Deal Details

The transaction covers 3.94 billion shares, representing 17.13 per cent of Vodafone’s voting rights. A few key numbers stand out:

Price paid: 112.5 pence per share, a 15 per cent premium over Thursday’s closing price
e& proceeds: around $5.95 billion in cash, including Vodafone’s final dividend
Completion timeline: expected by the end of this year, pending UK government approval

Who Is Xavier Niel

Niel built his fortune through Iliad Group, the disruptive French telecoms operator behind Free Mobile, later expanding into Italy and Poland. He is no stranger to Vodafone. Three years ago Iliad tried to buy Vodafone’s Italian operations for close to £9 billion, an offer that was rejected in favour of a sale to Swisscom. Niel has previously been openly critical of Vodafone’s management, telling a UK newspaper in 2024 that he wasn’t confident his money was being well managed there. This new investment brings him back as the company’s biggest single stakeholder, though without any board seat or governance agreement attached for now.

Why e& Sold Out

e& first invested in Vodafone in 2022 and later expanded its stake to secure a board seat. The company said the sale reflects a shift in its strategic priorities, allowing it to focus on core businesses while cashing in on the value it built up. Following the announcement, e& terminated its formal relationship agreement with Vodafone, and its representative on the board has stepped down.

What It Means Going Forward

Vodafone has spent the past three years simplifying its business under CEO Margherita Della Valle, exiting Italy and Spain, merging with Three in the UK, and moving to buy full control of VodafoneThree from CK Hutchison. Analysts have pointed to Niel’s history with Swedish operator Tele2, where he became largest shareholder in 2024 and the company later announced significant job cuts. Vega has said its investment is meant to be long-term and strategic rather than a precursor to a full takeover, but it has also signalled it plans to engage with Vodafone’s management over time, leaving investors watching closely for what comes next.