e& to sell entire stake in UK’s Vodafone for $6bn

UAE telecom operator e& will divest its entire holding in British telecom Vodafone following a review of its international investment portfolio.

e& will sell more than 3.94 billion shares, or 16.21 percent of Vodafone’s share capital, to Vega, an acquisition vehicle wholly owned by France’s Niel family group, for $5.95 billion, it said in a statement to the Abu Dhabi Securities Exchange (ADX).

The total consideration of £112.5 per share is comprised of £110.5 paid in cash by Vega and the final 2026 dividend of £2.02 per share to be received on July 30, 2026. The stake holds 17.13 percent of the voting rights in Vodafone.

The shares will be sold simultaneously through off-market block trades to three financial institutions, who will hold the shares until Vega completes regulatory requirements, the statement said.

The transaction will result in a net cash return of AED4.7 billion for e&. The deal is subject to regulatory approvals, with no specific timeline provided yet.

As part of the review process, e& has terminated the relationship agreement with Vodafone, and its board representative has stepped down from his position as a non-executive director of Vodafone.

The UAE telco is no longer seeking to exert control or influence on Vodafone’s board or management team, the e& statement said.

The decision to exit the Vodafone investment reflects the natural evolution of e&’s strategic priorities, the company said, adding that the funds from the sale will be used to “sharpen its focus on core businesses”.

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From early 2022, e& began acquiring shares in Vodafone, buying 9.8 percent for around $4.4 billion and eventually reaching 16.21 percent.

In April, e& said revenue increased 15 percent year on year to AED19.4 billion ($5.3 billion) in the first quarter of 2026, while net profit after federal royalty and corporate tax reached AED2.9 billion, up 4 percent when adjusted for the impact of gains on the sale of Dubai-based Khazna Data Centers.

Shares in e& closed 0.8 percent higher at AED19.66 on Thursday, up more than 7 percent in the year to date.

The Emirates Investment Authority owns 60 percent of e&.