French billionaire becomes Vodafone's largest shareholder with £4.4bn stake

French billionaire Xavier Niel is set to become Vodafone’s largest shareholder after his investment vehicle Vega agreed to buy Emirates Telecommunications Group’s entire stake in the UK telecoms company.

The deal values the holding at about £4.4 billion and covers roughly 16% to 16.2% of Vodafone. Reports said the agreed price is 112.5p a share, including Vodafone’s final dividend.

The stake will not transfer directly to Vega until regulatory approvals are completed. For now, the shares will be held by financial institutions while the transaction clears its conditions.

Ownership shake-up

The sale marks a notable shift in Vodafone’s shareholder base, replacing one strategic investor with another. It also gives e& an exit from one of its biggest European holdings.

e& said it is stepping back to sharpen its focus on core businesses and unlock value from the investment. As part of the transaction, Hatem Dowidar, e&’s board representative at Vodafone, has resigned from the company’s board.

Niel said Vega is intended to be a long-term minority shareholder and that it does not plan a full takeover. That means the transaction changes the balance of ownership without amounting to a change of control.

Why it matters for Vodafone

Vodafone has spent recent years reshaping its business, including exits from Italy and Spain and its merger with Three in the UK. The arrival of a new anchor shareholder is likely to intensify scrutiny of how the company uses its capital and what strategic priorities it pursues next.

The deal may also sharpen questions over governance and engagement at the group. A larger holding can increase investor attention even when the buyer says it has no intention of pursuing a takeover.

Niel is not new to Vodafone. He previously held a smaller stake through Atlas Investissement and later sold it, giving him a prior history with the group before this return as its largest shareholder.

What happens next

The immediate focus is on approvals and closing conditions. Investors will be watching Vodafone and e& filings for confirmation of timing and any further details on completion.

Market reaction will also be closely followed after the announcement, along with any comment from Vodafone’s leadership on how it plans to work with its new largest shareholder.

Further ahead, analysts will be looking for signs that Niel seeks a board seat or other formal role, or that the ownership change begins to influence Vodafone’s strategy, cost discipline or capital allocation.