French telecoms tycoon Xavier Niel becomes Vodafone's top shareholder with 16.2% stake from e&

The investment marks another chapter in Vodafone's overhaul under CEO Margherita Della Valle.

Vodafone shares jumped nearly 11 per cent on Friday after French telecoms billionaire Xavier Niel acquired a £4.4bn stake in the FTSE 100 group from UAE-backed e&, becoming its largest shareholder.

Deal Details

• Niel's investment vehicle, Vega, will acquire e&'s entire 16.2 per cent stake at 112.5p per share
• This represents a 15 per cent premium to Vodafone's previous closing price of 97.76p
• Vodafone shares climbed as high as 108.5p in early London trading

The transaction also terminates the relationship agreement signed between Vodafone and Emirates Telecommunications Group (e&) in 2023. Vodafone confirmed that e&'s board representative, Hatem Dowidar, had resigned with immediate effect following the sale.

Niel's Statement

Niel, founder of French telecoms group Iliad and a long-term Vodafone shareholder, said the British telecoms company was entering "a new phase of growth" after several years of restructuring under Della Valle.

"Vodafone is a compelling investment opportunity, underpinned by quality assets, strong brands, leadership positions and a diversified geographic footprint," he said.

"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."

Vega stated it intended to be a long-term shareholder and supportive partner, adding it had no intention of launching a takeover offer for the company.

A New Chapter for Vodafone

The investment marks another milestone in Vodafone's overhaul under Della Valle, who has:

• Exited Spain and Italy
• Refocused the business around the UK, Germany, and Africa
• Recently completed the creation of VodafoneThree, Britain's largest mobile network

For the telecoms giant, the deal replaces a shareholder whose investment had attracted political scrutiny with one of Europe's best-known telecoms entrepreneurs.

Niel's Telecoms Portfolio

Niel has built telecoms businesses across France, Italy, and Poland through Iliad, and also holds investments in operators including Tele2 and Millicom. He previously attempted to buy Vodafone's Italian operations in a deal reportedly worth around €11bn.

Analyst Commentary

Dan Coatsworth, head of investment analysis at AJ Bell, said:

"Vodafone has been slimming down to have a sharper focus on areas with the best growth potential."

"After years of miserable performance on the stock market, the shares enjoyed a strong rally in 2025 and early 2026 as investors reassessed Vodafone's position and applauded its strategic changes. There's now a new development."

Coatsworth noted that while Niel had already held a smaller stake in Vodafone since 2022, the enlarged investment would still require regulatory approval.

"Two years ago, the UK government said e&'s investment in Vodafone posed a national security risk. It's possible the UK government will have similar concerns with Niel's latest purchase, given it also investigated Patrick Drahi's investment in BT."

Richard Hunter, head of markets at Interactive Investor, said Friday's share price jump suggested some investors were already speculating about future corporate activity.

"UK markets were initially buoyed by a frenzy of potential M&A action, with Vodafone shares surging by almost 11 per cent."

However, he noted Niel had described the investment as a "long-term, strategic minority shareholding", "thus ruling out the likelihood of an all-out bid for the company."

Next Steps

The transaction is expected to complete after regulatory approvals, with Vega becoming Vodafone's largest shareholder once the transfer is finalised.