e& has announced the divestment of its entire stake in Vodafone following a strategic review of its international investment portfolio. The UAE-based telecommunications group has terminated its Relationship Agreement with Vodafone, with its Board representative stepping down as a non-executive Director of the company.
As part of the move, e& has signed a binding agreement with Vega, an acquisition vehicle fully owned by the Niel family group, to sell its complete holding of 3.94 billion Vodafone shares, representing approximately 16.21% of Vodafone’s issued share capital and 17.13% of voting rights.
The transaction values the shares at 112.5 pence per share, comprising around 110.5 pence per share in cash from the buyer and Vodafone’s final FY26 dividend of 2.02 pence per share, which will be received on 30 July 2026.
The shares will initially be transferred 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, e& expects to receive approximately AED 21.8 billion (US$5.95 billion) in cash proceeds, including the final Vodafone dividend. The transaction is expected to generate a net cash return of around AED 4.7 billion (US$1.3 billion) for e&.
The divestment marks a strategic shift in e&’s global investment approach as the company continues to evaluate opportunities and optimize its international portfolio. The company said the decision follows a comprehensive review aimed at maximizing value from its investments while supporting its broader growth strategy.
e& had acquired its stake in Vodafone as part of its international expansion strategy, gaining exposure to one of the world’s largest telecommunications groups. The exit will provide additional financial flexibility, allowing e& to focus on its core growth areas, including digital services, connectivity, technology solutions, and next-generation communications.
