Xavier Niel Buys US$5.9bn Vodafone Stake From e&

Billionaire Xavier Niel, the driving force behind iliad's rise from a French challenger operator to a multinational group with operations in France, Italy and Poland, is on his way to becoming Vodafone Group’s largest shareholder.

Vega, an acquisition vehicle wholly owned by the Niel family group, has secured a binding agreement to buy approximately 16.2% of Vodafone Group’s issued share capital from UAE-based tech conglomerate e&.

For now it has ruled out any move to buy Vodafone Group outright but it reserves the right to do so, should Vodafone’s Board of Directors agree to it or if a third party makes its own offer.

The cash consideration for the deal is approximately £4.4bn (US$5.9bn) and is subject to regulatory approval.

“Vodafone is a compelling investment opportunity, underpinned by quality assets, strong brands, leadership positions and a diversified geographic footprint,” says Xavier.

“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. 

Here, Xavier is presumably referring to the significant changes Vodafone CEO Margherita ​Della Valle has made to the scale of the business since her tenure began in 2023. 

The Group has sold its operations in Spain and Italy, choosing to increase its focus on Africa, Germany and the UK. In the case of the latter, it has completed its merger with Three UK, buying out CK Hutchison Group Telecom Holding Limited’s stake in VodafoneThree for £4.3bn (US$5.8bn) back in May 2026.

“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,” he adds. 

“As demonstrated by our past investments – including as minority investments in listed companies like Tele2 and Millicom – we have a proven track record of helping businesses to perform better and create substantial shareholder value.”

Strategic shift for e&

For the Abu Dhabi-based e& Group, the divestment marks a complete exit from its holding in Vodafone, sold at a 13% premium to the market price. 

The total transaction will generate cash proceeds for e& of approximately AED21.8bn (US$5.95bn), yielding a net cash return of AED4.7bn (about US$1.3bn). 

Following a strategic review of its international investments, e& has terminated its relationship agreement with Vodafone, dating back to 11 May 2023. 

Hatem Dowidar, the nominee director for e& on the Vodafone board, has stepped down with immediate effect, while the company has stated it no longer seeks to exert influence or control over Vodafone's management team.

e&’s divestment comes at a time when companies based in the UAE and the wider Middle East are having to grapple with the impacts of the on-and-off conflict between Iran on one side and the US and Israel on the other. 

The early days of the war saw Iran launch barrages of missiles and drones at nearby countries, damaging the UAE’s largest gas processing plant and Qatar’s liquefied natural gas (LNG) facilities. In addition, the conflict is impacting both tourism and the cost of living.

Expanding footprint and expertise

The Niel family group owns telecom investments across 26 countries in Europe and Latin America, serving 139 million subscribers and employing 45,000 staff. It reports annual revenues of €24bn (US$27.4bn) and earnings before interest, taxes, depreciation and amortisation, after leases (EBITDAaL) of more than €9bn (US$10.3bn).

Its portfolio includes brands like iliad, Switzerland’s Salt, Monaco Telecom, Ireland’s Eir, Tele2 and Millicom, which operates in Latin America under the Tigo brand. Niel is also a major player in European innovation, investing around €4bn (US$4.6bn) in AI projects since 2022 alongside backing technology educational institutes.