New setup for Vodafone. Xavier Niel founder of Iliad and among the most influential European telecommunications entrepreneurs, will acquire through Vega, the holding company controlled by his family, the entire 16,2% stake held by the Emirati group e& (formerly Etisalat). The operation, worth about 6 billion of dollars, will lead the French manager to become the largest shareholder of the British group.
For the French entrepreneur, this isn't a financial investment, but a strategic choice. Niel had already acquired a 2,5% stake in Vodafone in 2022, arguing for the need to accelerate the consolidation of the European telecommunications market. With the completion of the acquisition, his stake will increase to 16,2%, becoming the largest shareholder in Vodafone. first shareholder of the group in front of large institutional investors such as BlackRock, Vanguard e Norges Bank, which hold stakes of between 3% and 5%.
Xavier Neil becomes Vodafone's largest shareholder: details of the deal
The agreement provides for the transfer of 3,94 billion Vodafone shares to a price of 112,5 pence per share, including the cash component and the accruing dividend. The consideration recognizes a 15,1% bonus compared to the stock market close the day before, when the stock ended trading at 97,76 pence.
For e&, which had gradually built its stake in Vodafone, the sale allows it to valorize its investment and also marks its exit from the governance of the British group, with the resignation of the company representative from the board of directors.
The stake will be held through Vega, the Niel family's investment vehicle. In a statement, the holding company called Vodafone "a compelling investment opportunity," noting how the group's streamlining and increased focus on operations in Europe and Africa have created the conditions for a new phase of growth. Vega also clarified that it intends to be a stable, long-term shareholder, supporting management in creating value.
A signal for the European telecommunications market
Xavier Niel's entry comes at a time of profound transformation for telecommunications sectorPressure on margins, the investments required for the development of fiber and 5G networks, and the need to increase profitability have long been fueling the debate on market consolidation in Europe.
Niel has spoken out on this very issue several times in recent years, arguing for the need to reduce fragmentation in the sector to strengthen the competitiveness of European operators. His entry as Vodafone's largest shareholder could therefore strengthen market expectations regarding possible future strategic transactions.
Xavier Niel: Who is the founder of Iliad and what are his interests in Italy?
Born in 1967, Niel is considered one of the leading figures in European telecommunications. Founder of Iliad in 1990, he revolutionized the French market with the brand Free, imposing a model based on innovation, digitalization and competitively priced offers. Today the group is present in France, Italy and Poland, while through its personal holding company NJJ it also controls other operators such as Monaco Telecom, Salt in Switzerland and And go in Ireland. Over the years, it has also diversified its investments in media, venture capital, and the technology sector, even becoming a major shareholder of the French newspaper Le Monde.
Italy It has long been one of the strategic markets for its international expansion. Following the launch of Iliad in 2018, which quickly established a prominent position in the mobile market and subsequently extended its offering to fiber, Niel has repeatedly sought to consolidate the sector. Among the transactions under consideration are: the acquisition of Vodafone Italy and, subsequently, a project of merger between Iliad Italia and Vodafone Italia, with an estimated value of more than 10 billion euros. The deal did not materialize, and Vodafone then chose to sell its Italian subsidiary to Swisscom. Its interest in the Italian market, however, dates back several years: between 2015 and 2016, it had held a 15% stake in Telecom Italy, while in 2021, through Iliad, he had entered the capital of Unieuro with a share of approximately 12%, a stake subsequently sold as part of the operation promoted by Fnac-Darty which led to the delisting of the company.
