Vodafone shares jump after Xavier Niel becomes largest shareholder

Vodafone shares rose sharply on Friday after French telecom investor Xavier Niel agreed to buy Emirates Telecommunications Group’s 16.2% stake in the company through his investment vehicle Vega.

The transaction would make Niel Vodafone’s largest shareholder once it closes, marking a major shift in the UK telecom group’s ownership structure at a time when the company is still reshaping its portfolio.

The deal values the holding at about £4.4 billion, or roughly $5.9 billion, and was reported at a price of 110.5 pence a share. One report also cited 112.5 pence a share including a final dividend.

Vodafone stock jumped as much as 14% in early trading on the announcement, according to reporting, with other coverage putting the rise at about 11.7%. The move suggested investors see the change as supportive of Vodafone’s strategic reset.

What the deal changes

The stake sale transfers e& out of Vodafone’s shareholder base and removes its board presence. e&’s board representative, Hatem Dowidar, has resigned from Vodafone’s board as part of the transition.

The shares are being held by financial institutions while regulatory approvals are completed, so the transaction is not yet fully closed. That leaves timing as the main near-term uncertainty around the deal.

Vega has said it does not plan a complete takeover of Vodafone. That statement may ease some concerns that the shareholder change could immediately lead to a control battle.

Why investors are watching

Niel is the founder of French telecom group Iliad and has long been active in telecom investing across Europe. Reporting also noted that he previously held a smaller Vodafone stake through Atlas Investissement.

The move matters because Vodafone has been working through a broader restructuring and refocusing on core markets. A new top shareholder could affect how the company is viewed by investors, even if Vega is not seeking full control.

For now, the key questions are whether Vodafone or e& provide further detail on closing, whether regulators approve the transfer without delay, and whether Niel eventually seeks any governance role beyond passive ownership.

The immediate market reaction showed that investors are treating the deal as more than a routine share sale. It also underscored how sensitive Vodafone remains to changes in its shareholder base while its turnaround continues.