The Niel family group has agreed to acquire approximately 16.2 percent stake in Vodafone Group from Emirates Telecommunications Group (e&) in a transaction valued at £4.4 billion (€5.1 billion).
The deal will be positioning Xavier Niel’s investment vehicle Vega as the largest shareholder in Vodafone, one of Europe’s and Africa’s biggest telecom operators.
Vega has entered into a binding agreement to purchase e&’s entire holding of 3,944,743,685 Vodafone shares, representing approximately 16.21 percent of the company’s issued share capital and 17.13 percent of its voting rights. The agreed purchase price is £1.104792 per share. In addition to the sale proceeds, e& will receive Vodafone’s final dividend of 2.3625 eurocents per share, scheduled for payment on July 30.
The transaction remains subject to regulatory approvals and is expected to close before the end of the year. Vega will engage with the UK Government and relevant regulatory authorities as part of the approval process.
The Niel family group is the largest private investor in the European telecom sector. The acquisition will be financed by Xavier Niel and financial institutions without recourse to, or impact on the leverage of, other Niel family-controlled businesses.
Xavier Niel said Vodafone represents a compelling long-term investment because of its quality assets, established brands, leadership positions, and operations across Europe and Africa. He believes Vodafone has become a simpler and more focused company that is well positioned to unlock significant value, generate sustainable growth, and deliver stronger long-term cash flows. He highlighted his experience supporting telecom operators including Tele2 and Millicom as a minority investor.
Vega emphasized that its investment is intended to be a long-term strategic minority holding. The company confirmed under Rule 2.8 of the UK Takeover Code that it does not intend to make an offer for the entire share capital of Vodafone. However, it reserved the right to reconsider under specific circumstances, including agreement from Vodafone’s Board, the emergence of a competing bidder, a Rule 9 waiver proposal or reverse takeover, or any material change in circumstances determined by the UK Takeover Panel.
The acquisition significantly expands Xavier Niel’s influence in the global telecommunications industry. Across 26 countries in Europe and Latin America, the Niel family group’s telecom investments serve 139 million subscribers, employ 45,000 people, generate annual revenues of €24 billion, and produce more than €9 billion in EBITDAaL.
Its telecom portfolio includes iliad, Salt, Monaco Telecom, Eir, Tele2, and Millicom, providing expertise across fixed broadband, mobile communications, and converged telecom services. Vega said this operational experience will support its role as a long-term shareholder in Vodafone.
Beyond telecommunications, Xavier Niel has invested approximately €4 billion in European artificial intelligence projects since 2022 and supports innovation and entrepreneurship initiatives including School 42, Station F, Hectar, and Kima Ventures.
Vodafone said that the relationship agreement signed with e& on May 11, 2023, has been terminated. Hatem Dowidar, who served on Vodafone’s Board as e&’s nominee director, has resigned from the Board with immediate effect.
BABURAJAN KIZHAKEDATH