e& Announces USD 5.95 Billion Sale of Vodafone Investment

Emirates Telecommunications Group Company PJSC ("e&") has entered into a binding agreement with Vega, an acquisition vehicle owned by the Niel family group, to divest its entire holding of shares in Vodafone Group PLC ("Vodafone") for a total consideration of approximately $5.95 billion. The transaction involves the sale of 3,944,743,685 ordinary shares at a price of 112.5 GBp per share, which includes Vodafone's final FY26 dividend. This strategic move was announced on July 10, 2026, following e&'s comprehensive review of its international investment portfolio.

The decision to terminate the Relationship Agreement with Vodafone comes as e& reassesses its investment strategy and seeks to optimize its portfolio. The divestment represents approximately 16.21% of Vodafone's issued share capital and 17.13% of its total voting rights. As part of the agreement, a representative from e& has stepped down from his position as a non-executive Director of Vodafone, signaling a significant shift in the relationship between the two companies.

The sale will be executed through off-market block trades to three financial institutions, which will hold the shares until Vega completes necessary regulatory requirements. The total cash proceeds to e& from this transaction are expected to be around AED 21.8 billion (USD 5.95 billion), which includes the final FY26 dividend of 2.02 GBp per share, payable on July 30, 2026. This divestment is anticipated to yield a net cash return of approximately AED 4.7 billion (USD 1.3 billion) for e&.

The telecommunications sector has been undergoing significant changes, with companies increasingly focusing on core operations and divesting non-core assets to enhance shareholder value. e&'s decision to divest its Vodafone shares aligns with this trend, reflecting a strategic pivot towards maximizing returns on investments. The transaction also highlights the ongoing consolidation in the telecom industry, as companies seek to streamline operations and focus on emerging technologies and digital solutions.

Looking ahead, the successful completion of this transaction may have broader implications for both e& and Vodafone. For e&, the influx of cash could provide the necessary capital to invest in new technologies and expand its digital offerings across various markets. For Vodafone, the reduction in shareholding by a significant investor may prompt the company to reevaluate its strategic direction and explore new partnerships or growth opportunities. Overall, this transaction underscores the dynamic nature of the telecommunications sector and the importance of strategic alignment in driving long-term value.