Emirates Telecommunications Group Company (e&) has agreed to sell its entire 16.21 percent stake in Vodafone Group for approximately $5.95 billion (AED21.8 billion), marking the end of its strategic investment in the UK telecommunications company following a review of its international investment portfolio.
The company also announced the termination of its Relationship Agreement with Vodafone, under which e& had board representation. As part of the move, e&’s Board representative has stepped down from his role as a non-executive director of Vodafone.
Under a binding agreement, e& will divest its entire holding of 3,944,743,685 ordinary shares, representing 16.21 percent of Vodafone’s issued share capital and 17.13 percent of its total voting rights, to Vega, an acquisition vehicle wholly owned by the Niel family group.
The transaction values the shares at 112.5 pence per share, comprising 110.5 pence per share in cash from the buyer and Vodafone’s final financial year 2026 dividend of 2.02 pence per share, which is scheduled to be paid on July 30, 2026.
The shares will be transferred simultaneously through off-market block trades to three financial institutions, which will hold the shares until Vega completes the required regulatory approvals.
Upon completion of the transfer to the financial institutions, e& expects to receive cash proceeds of approximately $5.95 billion (AED21.8 billion), including the final dividend of financial year 2026. The transaction is also expected to generate a net cash return of about $1.3 billion (AED4.7 billion).
The divestment follows e&’s strategic review of its international investment portfolio and reflects the group’s ongoing focus on disciplined capital allocation, portfolio optimization and long-term value creation. The move aims to streamline its investment strategy while strengthening financial flexibility to support future growth opportunities across its core markets and strategic international businesses.
