E& sells Vodafone stake to Xavier Niel family for $5.95 billion

e& agreed on July 10 to sell its entire stake in Vodafone for $5.95 billion, ending a three-year investment that grew far beyond its original 9.8% purchase and turning one of its biggest overseas positions into cash.

The stake sale gives Xavier Niel’s family group, through the vehicle Vega, a much larger place inside one of Europe’s most sensitive telecom holdings. Vega said it intends the position as a long-term, strategic minority investment and does not plan to make an offer for Vodafone’s full share capital, but the purchase still makes Niel Vodafone’s largest shareholder. That is a notable shift in power inside the British telecom firm without crossing the line into a takeover.

For e&, the exit is as much about strategy as price. The company said the sale fits a broader sharpening of focus on core businesses and unlocks cash from an international holding that had become increasingly valuable but less central to its priorities. e& also said the transaction should generate a net cash return of about $1.3 billion, giving the United Arab Emirates group more room to redeploy capital at home or into businesses closer to its main operating base.

The deal values Vodafone shares at 112.5 pence each, covering 3.94 billion shares. That price includes about 110.5 pence in cash and a 2.02 pence FY26 dividend payable on July 30, 2026, giving e& a premium for a block that had become a major corporate asset rather than a passive trade. Vodafone’s share buybacks had also inflated e&’s percentage holding over time, lifting it to 17.0050% on February 20 and then to 17.0866% by the end of March, without any new share purchases.

e& first entered Vodafone in May 2022 with a 9.8% stake bought for $4.4 billion. Since then, the holding became a visible test of how far a Gulf telecom operator could extend its influence in Europe while balancing domestic priorities and international ambitions. Selling out now suggests a tighter judgment on capital allocation, as slow growth and heavy network spending continue to pressure telecom groups to concentrate on where returns are highest.

For Vodafone, the transfer changes the shareholder map at a moment when major owners can still matter as much as operating results. For Niel, founder of Iliad in France, the stake secures a durable seat at the table in a company that remains central to European telecom consolidation and investor scrutiny.