- Xavier Niel has acquired a 16 per cent stake worth £4.4 billion to become Vodafone's biggest shareholder.
- The stake was bought from Emirati telecoms group e&, which has exited its investment.
- Investors are watching whether Niel will seek a greater role in shaping Vodafone's future.
Vodafone has a new largest shareholder after French telecoms billionaire Xavier Niel bought a 16 per cent stake worth £4.4 billion, a move that could mark the beginning of a new chapter for the telecoms group as it pushes ahead with a major restructuring.
The Vodafone shareholder change follows the decision by Emirati telecoms company e& to sell its entire holding at 112.5p a share, ending an investment it first made in 2022. Niel purchased the stake through his family investment vehicle, Vega, paying a 15 per cent premium to Vodafone's closing share price on Thursday.
The acquisition makes Niel Vodafone's biggest shareholder, although he will not immediately take a seat on the company's board.
Niel, founder of French telecoms group Iliad, described Vodafone as a "compelling investment opportunity", reportedly saying the company had become simpler and more focused after a series of major restructuring decisions.
Over the past few years, Vodafone has sold its businesses in Italy and Spain, exited its Dutch joint venture and completed its merger with Three to create the UK's largest mobile network operator. In May, the company also announced plans to acquire CK Hutchison's 49 per cent stake in VodafoneThree, allowing it to take full ownership of the business.
Niel reportedly said he believes Vodafone is well positioned to unlock further value across its European and African operations and that Vega intends to remain a long-term minority shareholder.
Investors look beyond the share purchase
Although the transaction does not include any governance agreement, market observers are already speculating about how active Niel could become.
Telecoms analyst Carl Murdock-Smith of Citi reportedly noted that investors may compare Vodafone with Swedish telecoms company Tele2, where Niel became the largest shareholder in 2024. Months after that investment, Tele2 announced plans to reduce its workforce by 15 per cent, prompting questions over whether Vodafone could face similar pressure to cut costs further.
A spokesperson for Niel reportedly said the deal is solely a share purchase with no governance package attached. However, the spokesperson added that, subject to regulatory approvals, Vega would expect an appropriate level of engagement with Vodafone over time.
The announcement was welcomed by investors, with Vodafone shares rising 12 per cent following the news.
Niel, whose business interests span telecoms operations in France, Italy, Poland and Iceland, is estimated by Forbes to have a fortune of around £11.5 billion.
