Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Xavier Niel has purchased a 16.21 per cent stake in Vodafone Group for £4.4bn, a move that will make the French billionaire the FTSE 100 group’s largest shareholder.
Niel’s Vega entity acquired the position from Emirati telecoms group e& for 110 pence a share, a 15 per cent premium on Vodafone’s closing price on Thursday.
The move is the latest step in Niel’s European telecoms expansion, which has seen him build established businesses in France, Italy, Poland and Ireland.
Niel has long held an interest in Vodafone, acquiring a 2.5 per cent stake in the business in 2022 through his investment vehicle Atlas Investissement, which it later sold. He has previously considered acquiring a larger position in the business, according to people familiar with the matter.
Under the deal, which is subject to regulatory clearance, the stake will be held by “three financial institutions” until such approvals are given, and will also see e& relinquish its board seat, the company said on Friday.
Vodafone’s shares rose 13 per cent in early London trading on Friday.
Commenting on the announcement, Niel noted Vodafone’s quality assets and “diversified geographic footprint”.
He added: “We are confident Vodafone can deliver sustainable growth and strong cash flow generation over the long term and — as an anchor investor based in Europe — we are ready to contribute our deep sector expertise and operational knowhow to its future success . . . We have a proven track record of helping businesses to perform better and create substantial shareholder value.”
Vodafone on Friday described the Niel family group as a “supportive, long-term shareholder”, adding: “They recognise the quality of our diversified operations and have confidence in the new chapter of Vodafone’s growth.”
Niel’s son, Jules Niel, sits on the board of Latin American group Millicom, while at Swedish group Tele2, he appointed the chief executive of French telecoms company Iliad, Thomas Reynaud, and his deputy Aude Durand, to represent him.
E& said the decision to sell its stake reflected “the natural evolution of its strategic priorities, enabling the group to sharpen its strategic focus on core businesses while unlocking the value created through this investment”.
Vodafone has been undergoing a transformation under chief executive Margherita Della Valle, who has sought to sell the group’s struggling businesses and strengthen its key markets.
In May, Vodafone announced it would acquire CK Hutchison’s 49 per cent stake in their UK joint venture Vodafone Three for £4.3bn to take full control of the company.
Della Valle also sold the company’s Spanish and Italian units in 2024 and 2025 respectively, and announced that Vodafone would sell its 50 per cent stake in its Dutch operation earlier this year.
