Xavier Niel Became Largest Vodafone Shareholder

Middle Eastern telco e& sold its 16.2% stake in Vodafone Group to an investment firm owned by Xavier Niel for £4.4 billion. This has established the French billionaire as the UK-based operator’s largest shareholder.

e& stated that it had agreed the sale of its entire stake in Vodafone for around £1.10 a share, representing a 13% premium on the market price. It initially bought a 9.8% stake in 2022, before gradually growing it over the years. Niel will take the stake through his family-run entity Vega, giving the billionaire a substantial interest in Vodafone and adding to his telecoms operations across France, Italy, Poland and Ireland.

Niel first acquired a 2.5% stake in Vodafone in 2022 through another investment vehicle which was later sold. “Vodafone is a compelling investment opportunity, underpinned by quality assets, strong brands, leadership positions and a diversified geographic footprint,” Neil said. E& stated its decision to sell the stake reflects the natural evolution of its strategic priorities, enabling it to sharpen strategic focus on core businesses while unlocking the value created through this investment. It will also relinquish a seat on Vodafone’s board, with its nominee director Hatem Dowidar resigning with immediate effect.

Despite the stake sale, some elements of the strategic partnership between the pair, including collaboration on procurement, technology and enterprise services, remain in place. Vodafone confirmed the sale in its own statement, while describing the Niel family group as supportive, long-term shareholders. “They recognise the quality of our diversified operations and have confidence in the new chapter of Vodafone Group.” The sale is subject to regulatory approval. Until cleared, e&’s stake will be held by three financial institutions.