Emirates Telecommunications Group, known as E&, announced on Thursday it would divest its entire 16% stake in Vodafone to the family of French billionaire Xavier Niel for $5.95 billion (£4.4 billion). The agreement prices Vodafone shares at 112.5 pence each, representing a 15% premium over the previous close.
The transaction, facilitated by a special purpose vehicle named Vega, is expected to deliver a net cash return of approximately $1.3 billion to the UAE telecoms group. Following the announcement, E& shares surged more than 11% in early London trading. E& confirmed its board representative would step down and that it would no longer seek to influence Vodafone's management.
The sale marks a significant shift for Niel, whose telecoms firm Iliad previously attempted and failed to acquire Vodafone's Italian operations for roughly £9 billion three years ago. The deal comes as Vodafone separately moves to take full control of its UK joint venture VodafoneThree following an agreement to buy out partner CK Hutchison.