UAE-based telecom operator e& has reached an agreement to dispose of its full 16.3% equity stake in Vodafone Group PLC to Vega, the investment vehicle tied to the family of French telecommunications entrepreneur Xavier Niel, the company said on Friday.
Under the terms agreed, the consideration will amount to 112.5 pence per Vodafone share, a package that incorporates both an immediate cash component and a planned future dividend. That figure represents a 13% premium to Vodafone's last closing price.
Vodafone shares moved only slightly on the announcement, slipping about 0.2% to GBP97.76, broadly tracking the FTSE 100 benchmark.
The sale covers e&'s entire holding of more than 16% in the British operator, bringing to an end its position as Vodafone's largest shareholder after more than four years of ownership. e& initially invested in Vodafone in 2022.
e& said the transaction aligns with its approach to active portfolio management and value creation for shareholders. The company indicated it expects to receive gross proceeds of approximately $5.95 billion upon completion of the deal.
Despite the disposal, both companies said their strategic relationship will continue. Since e& became Vodafone's biggest shareholder in 2022, the pair have collaborated on several initiatives including procurement, technology, enterprise services and digital infrastructure.
Market observers noted the disposal is among the largest strategic stake sales in the European telecommunications sector so far this year. e& said the proceeds will provide additional financial flexibility as it pursues expansion of its digital, enterprise and international operations.
Deal specifics
- Buyer: Vega - an investment vehicle controlled by the family of Xavier Niel.
- Seller: e& Group.
- Stake sold: the seller's entire 16.3% holding in Vodafone Group PLC.
- Consideration: 112.5 pence per Vodafone share, including cash and a future dividend - totaling about $5.95 billion.
- Market reaction: Vodafone shares slipped roughly 0.2% to GBP97.76 on the report.
Context and implications
The agreement removes e& as Vodafone's largest shareholder after more than four years of ownership, while maintaining a stated strategic relationship between the companies. e& described the sale as consistent with active investment management and as a means to enhance its financial flexibility amid ongoing expansion plans.
Disclosure