French telecoms billionaire Xavier Niel is to become the largest shareholder in Vodafone Group plc after agreeing a £4.4 billion deal with e& (formerly Etisalat).
Niel, whose family group’s telecom investments and businesses span 26 countries in Europe and Latin America, has agreed to buy the Emirati telecoms giant’s 16.2% shareholding through newly created acquisition vehicle Vega.
The largest private investor in the telecoms sector in Europe, Niel’s family group has 139 million subscribers, 45,000 employees, €24bn of annual revenues and more than €9bn of EBITDAaL. Assets include iliad, Salt, Monaco Telecom, Eir, Tele2 and Millicom.
Niel (pictured in 2014) is also a significant investor in Europe’s technology and innovation landscape, including approximately €4bn of investments since 2022 in European AI projects. He has a wider track record of supporting education and entrepreneurship platforms, including School 42, Station F, Hectar and Kima Ventures.
e& will sell its entire stake, which amounts to 17.13% of the voting rights of Vodafone, for a price per share of £1.11.
Ownership of all the shares are expected to transfer by the year end. Vega says its investment is intended to be a long-term, strategic minority shareholding.
In May Vodafone said it would take full ownership of its VodafoneThree joint venture after agreeing a £4.3bn deal to buy the 49% stake owned by CK Hutchison – parent company of Three.
It also reported revenue growth of 8% in FY26 to €40.5bn, with profit before tax of almost £1.9bn – compared to a £1.5bn loss in FY25, as it simplifies its business.
However investor sentiment was dampened by the decision to pause share buybacks to prioritise taking full control of the joint venture; disappointing results in Germany, its largest market; and missing its overall adjusted earnings forecast.
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“Vodafone is a compelling investment opportunity, underpinned by quality assets, strong brands, leadership positions and a diversified geographic footprint,” said Niel. “As a simpler, more focused business, Vodafone is ready for a new phase of growth and is well-placed to unlock substantial untapped value across its European and African operations.
“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 know-how to its future success.
“As demonstrated by our past investments – including as minority investors in listed companies like Tele2 and Millicom – we have a proven track record of helping businesses to perform better and create substantial shareholder value.”