Niel family’s Vega to acquire 16.2% Vodafone stake from e& for $5.95bn

Vega, a holding institution of French concern tycoon Xavier Niel's household group, has agreed to bargain Emirates Telecommunications Group's (e&) full 16.21% involvement successful Vodafone Group.

The shares correspond astir 17.13% of Vodafone's voting rights. The transaction is worthy astir £4.4bn ($5.95bn).

The acquisition covers 3.94 cardinal shares astatine astir £1.105 per share. Once regulatory approvals are granted, the woody volition marque Vega the largest shareholder of Vodafone.

As portion of the agreement, e& volition besides person a last dividend of €0.023 per share, to beryllium paid by Vodafone connected 30 July.

The woody follows e&'s strategical reappraisal of its planetary investments and volition bring to an extremity its narration statement with Vodafone, which was signed successful May 2023.

In transportation with this, e&'s committee typical is stepping down arsenic a non-executive manager astatine Vodafone.

The shares volition archetypal beryllium acquired done simultaneous off-market artifact trades to 3 fiscal institutions, a measurement related to Vega's hedging arrangements.

Physical colony and transportation of the shares to Vega volition hap aft regulatory approvals, with completion targeted for the extremity of the year. The holding institution has indicated it volition statesman engagement with the UK authorities and enactment with applicable authorities during the support process.

Vega's concern volition beryllium afloat financed by Xavier Niel and participating fiscal institutions and volition not impact the leverage of different Niel household radical entities. The institution has been acceptable up solely to clasp shares successful Vodafone.

Xavier Niel said: "Vodafone is simply a compelling concern opportunity, underpinned by prime assets, beardown brands, enactment positions and a diversified geographic footprint. As a simpler, much focused business, Vodafone is acceptable for a caller signifier of maturation and is well-placed to unlock important untapped worth crossed its European and African operations.

"We are assured Vodafone tin present sustainable maturation and beardown currency travel procreation implicit the agelong word and – arsenic an anchor capitalist based successful Europe – we are acceptable to lend our heavy assemblage expertise and operational know-how to its aboriginal success."

According to Rule 2.8 of the UK Takeover Code, Vega does not program a afloat takeover of Vodafone. However, it reserves the close to reconsider this presumption if agreed by Vodafone's board, if a 3rd enactment announces a steadfast offer, if Vodafone proposes a Rule 9 waiver oregon reverse takeover, oregon if a worldly alteration arises arsenic defined by the Takeover Panel.

Xavier Niel's household radical operates fixed, mobile, and converged telecom businesses successful 26 countries crossed Europe and Latin America. Its portfolio includes iliad, Monaco Telecom, Salt, Tele2, Eir, and Millicom, with a full subscriber basal of 139 cardinal and a workforce of 45,000.