French billionaire Xavier Niel becomes Vodafone’s largest shareholder
6 reported2 unconfirmed
French telecoms billionaire Xavier Niel has become Vodafone’s largest shareholder after purchasing a 16% stake for £4.4 billion. The stake was acquired from the Emirati telecoms group e&, which announced the sale of its entire shareholding on Friday at 112.5 pence per share. Niel bought the stake through his family investment vehicle Vega at a 15% premium to Vodafone’s share price on Thursday. Niel stated that Vega intends to be a long-term minority shareholder in Vodafone, which he described as a “compelling investment opportunity” following recent restructuring. The transaction does not include any governance package, according to a spokesperson for Niel, though the spokesperson said they would expect appropriate engagement with the company over time. Shares in Vodafone rose 12% on Friday following the announcement.
What’s reported
Xavier Niel bought a 16% stake in Vodafone for £4.4 billion, becoming its largest shareholder.
The stake was purchased from Emirati telecoms group e&, which sold its entire shareholding at 112.5p per share.
Niel bought the stake through his family investment vehicle Vega at a 15% premium to Vodafone’s Thursday share price.
Niel said Vega intends to be a long-term minority shareholder.
A spokesperson for Niel said the transaction was only a share purchase with no governance package attached.
Vodafone shares jumped 12% on Friday.
Open questions
Whether Niel will seek board representation at Vodafone.
What specific changes, if any, Niel may push for as a major shareholder.
Key figures
Xavier Niel: French telecoms billionaire, founder of Iliad, buyer of the Vodafone stake.
Carl Murdock-Smith: Telecoms analyst at Citi.
Delphine Arnault: Niel’s partner, daughter of Bernard Arnault.
Bernard Arnault: France’s richest man, head of LVMH.
Sources: The Guardian
