Telecom giant Vodafone sold: New owner revealed

French billionaire Xavier Niel has significantly increased his stake in Vodafone Group, acquiring a 16% share from the UAE-based telecommunications company e& for approximately 4.4 billion pounds. This strategic move positions Niel, the founder of French telecom firm Iliad, as Vodafone's largest shareholder.

The acquisition represents a 15% premium on Vodafone's closing share price, with the transaction executed at 110 pence per share. Following the announcement, Vodafone's shares saw an early surge of about 13% on Friday's trading. The deal is subject to regulatory approval, and the shares will be held in escrow by three financial institutions until the process is complete. Upon finalization, e& will relinquish its representation on Vodafone's board.

Niel, who previously held a 2.5% stake in Vodafone through Atlas Investissement in 2022 before divesting, stated his return signifies a long-term investment. He expressed confidence in Vodafone's quality assets and extensive international network, believing the company can achieve sustainable growth and generate strong cash flow. Niel indicated readiness to contribute his operational expertise to Vodafone's future success.

Vodafone's management welcomed the Niel family as a long-term, supportive shareholder. This development occurs as Vodafone CEO Margherita Della Valle continues a restructuring process. The company has been accelerating its strategy to divest underperforming operations and focus on core markets, selling its Spanish and Italian operations in 2024 and 2025, and divesting its Dutch stake earlier this year.

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We believe Vodafone can achieve sustainable growth and generate strong cash flow in the long term. We are ready to contribute with our operational expertise to the company's future success.