Vodafone shares surged almost 11% on Friday after the French telecoms billionaire Xavier Niel bought a £4.4bn stake in the FTSE 100 group, becoming its largest shareholder. Niel, who founded Iliad, acquired the 16% stake through his family investment vehicle Vega, purchasing the entire shareholding of the Emirati telecoms group e& at 112.5p a share – a 15% premium to Vodafone’s Thursday close. E& had first taken a stake worth £3.3bn in Vodafone in 2022, but announced the sale on Friday.
Niel, who previously sold a 2.5% stake in Vodafone through his Atlas Investissement vehicle in 2022, said the company is now a “compelling investment opportunity”. “As a simpler, more focused business, Vodafone is ready for a new phase of growth and is well placed to unlock substantial untapped value across its European and African operations,” he said. “We are confident Vodafone can deliver sustainable growth and strong cashflow generation over the long term and – as an anchor investor based in Europe – we are ready to contribute our deep sector expertise and operational knowhow to its future success.” Vega has been set up solely to house his stake, and Niel said he intends to be a long-term minority shareholder.
“French billionaire Xavier Niel buys 16% Vodafone stake for £4.4bn, becoming its largest shareholder.”
Vodafone has been restructuring in recent years, selling its Italian and Spanish operations and its 50% stake in its Dutch joint venture, as well as merging with Three to create the UK’s largest mobile operator. In May, Vodafone said it would acquire CK Hutchison’s 49% stake in the VodafoneThree joint venture to take full control.
Niel, estimated by Forbes to be worth $15.5bn (£11.5bn), has built telecoms businesses in France, Italy, Poland and Iceland. His partner of more than 15 years is Delphine Arnault, daughter of France’s richest man, Bernard Arnault, and an heiress to LVMH. E& had one seat on Vodafone’s board, with the right to nominate a second if its shareholding exceeded 20%, but Niel does not have board representation.
Carl Murdock-Smith, a telecoms analyst at Citi, noted that Niel has a record of being an active shareholder and could push for changes including job cuts. Months after taking a 19.8% stake for $1.3bn in Tele2 in 2024, which made him the Swedish telecoms company’s biggest shareholder, it announced it was cutting 15% of the workforce.