UAE-based e& has completed the transfer of its entire holding of nearly 3.95 billion shares in Vodafone Group to Vega, a wholly owned acquisition vehicle of the Niel family group of companies, the telecom operator said in a statement. The deal covers approximately 16.21 percent of Vodafone’s issued share capital and 17.13 percent of its total voting rights at a price of 112.5 British pence per share. This comprises a cash payment of roughly 110.5 pence from the buyer together with Vodafone’s final dividend for fiscal year 2026 of 2.02 pence per share, payable on July 30.
According to the company’s announcement, e& will receive cash proceeds of approximately AED 21.8 billion, equivalent to $5.95 billion, including the dividend. The transaction is expected to generate net cash proceeds of about AED 4.7 billion, or $1.3 billion. e& first acquired its position in the British operator in 2022 and had expanded the holding as part of an earlier strategic partnership that has now been terminated.
The sale follows a strategic review of e&’s international investment portfolio and the mutual decision to end the relationship agreement with Vodafone. In its statement, the Abu Dhabi-headquartered group said the move aligns with efforts to maximise returns from overseas assets while creating additional liquidity to fund future growth across its core digital and technology businesses. e& added that the completed transaction supports its long-term strategy focused on higher-return opportunities in key markets.
Vega is controlled by the family of French billionaire Xavier Niel, founder of the Iliad Group that operates the Free mobile network in France and has expanded across Europe. The acquisition reshapes Vodafone’s shareholder base at a time when the UK telecom company continues to navigate competitive pressures and consolidation trends in the European market, according to sector observers. Completion of the share transfers to financial intermediaries enabled the prompt realisation of proceeds for e&.
Public filings and corporate disclosures show the original investment in Vodafone formed part of e&’s push to build global partnerships following its rebranding from Etisalat. The group has maintained a portfolio of international stakes that it periodically assesses for strategic fit and financial performance. This disposal represents one of the larger recent exits by a Gulf telecom operator from a European incumbent.
The net positive return highlighted in e&’s announcement reflects value generated during the holding period despite market volatility in the telecom sector over the past four years. Proceeds from the transaction will bolster the company’s balance sheet as it pursues expansion in areas such as connectivity solutions, enterprise services and digital infrastructure across the Middle East, Africa and Asia. Industry benchmarks for similar portfolio adjustments indicate Gulf-based operators have increasingly favoured such realignments to optimise capital deployment.
