Vega Buys 16% of Vodafone from e& for £4.4 Billion as e& Exits Stake

Vega acquired a 16% stake in Vodafone from e& for £4.4 billion on Friday. The transaction was executed at 112.5 pence per share, a 15% premium to Vodafone’s closing price the previous day. Vodafone shares rose 12% on Friday after the announcement.

Xavier Niel, founder of Iliad Group, established Vega solely to hold the Vodafone shares. He stated that the vehicle intends to remain a long-term minority shareholder. “Vodafone is a compelling investment opportunity, underpinned by quality assets, strong brands, leadership positions and a diversified geographic footprint,” Niel said.

Vodafone ended its relationship with e& following the sale. The Emirati group’s board representative on Vodafone resigned. A spokesperson for Niel confirmed the transaction was a share purchase only and included no governance package.

Niel currently holds no board seat at Vodafone. The company has restructured in recent years, selling operations in Italy and Spain and completing a £4.3 billion deal in May to acquire full ownership of its VodafoneThree joint venture in the UK. The combined VodafoneThree business, formed last year, is the UK’s largest mobile operator.

Niel’s family telecom investments span 26 countries. He holds minority stakes in Tele2 of Sweden and Millicom in Latin America. In 2024 his vehicle took a 19.8% stake in Tele2 for $1.3 billion and became its largest shareholder; Tele2 later announced a 15% workforce reduction.

Three years earlier Iliad offered about £9 billion for Vodafone’s Italian operations, but the bid was rejected. Forbes estimates Niel and his family’s wealth at $15.6 billion.