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UAE’s e& Group to sell Vodafone stake for $5.95 billion at 13% premium
Abu Dhabi-listed telecom group signs binding agreement with Niel family’s Vega to divest 3.94 billion Vodafone shares, ending board representation and relationship agreement
- PUBLISHED: Fri 10 Jul 2026, 10:21 AM UPDATED: Fri 10 Jul 2026, 10:22 AM
Emirates Telecommunications Group Company (e& Group) has signed a binding agreement to sell its entire stake in Vodafone Group PLC for a total consideration of 112.5 GBp per share, at a 13 per cent premium to the market price, the company announced on Thursday.
The Abu Dhabi-based group will divest its full holding of 3,944,743,685 ordinary shares in Vodafone – representing around 16.21 per cent of Vodafone’s share capital and 17.13 per cent of its total voting rights – to Vega, an acquisition vehicle wholly owned by the Niel family group.
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The transaction will generate cash proceeds of approximately Dh21.8 billion ($5.95 billion) to e&, inclusive of the final FY26 dividend, resulting in a net cash return of Dh4.7 billion (around $1.3 billion).
The consideration comprises approximately 110.5 GBp per share paid in cash by the buyer, plus a final FY26 dividend of 2.02 GBp per share, due to be received on July 30, 2026.
The shares will be sold simultaneously through off-market block trades to three financial institutions, which will hold them until Vega completes the necessary regulatory requirements. Completion of the transaction is subject to customary closing conditions and is expected in the near future.
Board decisions
The agreement follows a board meeting held on Wednesday, in which e& Group’s directors passed a series of resolutions related to the company’s Vodafone investment. The board terminated the Relationship Agreement with Vodafone, and e&’s board representative has stepped down from his position as a non-executive director of Vodafone.
The company said it no longer seeks to exert control or influence over Vodafone's board or management team, following a comprehensive strategic review of its international investment portfolio.
The UAE telecom giant said the decision to exit the investment reflects the natural evolution of its strategic priorities, enabling it to sharpen its focus on core businesses while unlocking the value created through the holding.
The company said it appreciated its partnership with Vodafone and looks forward to exploring future opportunities to collaborate in ways that create mutual value.
