Emirates Telecommunications Group to Sell Entire Vodafone Stake in $6 Billion Deal
e& will sell its entire 16.21% stake in Vodafone to Xavier Niel-backed Vega in a deal worth nearly $6 billion, ending its investment in the UK telecom company.
SociapaHQ
Emirates Telecommunications Group (e&) has agreed to sell its entire stake in Vodafone Group in a deal worth nearly $6 billion, exiting the UK telecom operator.
The Abu Dhabi-based company said it has entered into a binding agreement to sell its 3.94 billion shares in Vodafone, equivalent to a 16.21% equity stake and 17.13% voting rights, to Vega, an acquisition vehicle controlled by the family of French billionaire Xavier Niel.
Under the deal, e& will get 112.5 pence per share, including 110.5 pence in cash from Vega and Vodafone’s final FY26 dividend of 2.02 pence per share, payable on July 30, 2026. The offer is at a 13% premium to Vodafone's prevailing market price.
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Strategic Exit:
The transaction is expected to generate about Dh21.8 billion ($5.95 billion) in cash proceeds for e&, including the dividend payment. The company said the deal would result in a net cash return of about Dh4.7 billion ($1.3 billion).
First, the Vodafone shares will be transferred to three financial institutions in off-market block trades, which will hold the shares until Vega obtains the necessary regulatory clearances to complete the transaction. The transaction remains subject to customary closing conditions.
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The disposal forms part of e&’s strategic review of its international investment portfolio. As part of the process, the company’s board approved the termination of its Relationship Agreement with Vodafone and e&’s representative on Vodafone’s board resigned as non-executive director.
Following the divestment, e& said it no longer plans to influence the Vodafone board or management and will instead focus on its core businesses and capital allocation priorities.
The company said its investment in Vodafone was coming to an end but it was open to future commercial collaborations with the telecom operator where mutually beneficial opportunities arose.
