UAE telecom operator E& Group announced that it has agreed to sell its entire 16.21percent stake in Vodafone to a company owned by the family of French telecom billionaire Xavier Niel in a deal valued at $5.95 billion.
Under the agreement, E& will divest its full shareholding at a price of 112.5 pence per share, significantly above Vodafone's latest closing price of 97.76 pence. The transaction marks E&'s exit from its investment in the British telecommunications company after being one of its largest shareholders.
As part of the sale, E& said it would no longer have any role in influencing Vodafone's governance or strategic direction.
The company confirmed that its representative on Vodafone's board has resigned from the position of non-executive director, ending E&'s involvement in the company's board and management.
E& expects the transaction to generate a net cash return of around $1.3 billion. The proceeds are expected to strengthen the group's financial position and provide additional flexibility for future investments aligned with its long-term growth strategy.
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The buyer is a company controlled by the family of Xavier Niel, the French entrepreneur best known for building telecommunications and technology businesses across Europe. The acquisition represents a significant investment in Vodafone and signals continued interest from major investors in the global telecom sector.
The deal is subject to customary closing conditions and regulatory approvals, where applicable.
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Upon completion, E& will have fully exited its stake in Vodafone, while the new investor will become one of the company's key shareholders.
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The transaction reflects E&'s ongoing portfolio optimization strategy as it focuses on expanding its core operations and pursuing growth opportunities in digital services, technology, and telecommunications across international markets.