UAE's E& to sell Vodafone stake to French telecoms tycoon Niel for nearly $6 billion
Major Stake Sale Marks Strategic Shift for E&
Details of the Transaction
July 10 (Reuters) - UAE telecoms group E& said on Friday it would sell its stake in Vodafone for $5.95 billion to the family group of French billionaire Xavier Niel, ending its investment in the British firm after a review of its international portfolio.
Share Pricing and Financial Impact
The deal prices Vodafone shares at 112.5 pence each, a 15% premium to the last close of 97.76 pence, and will result in a net cash return of about $1.3 billion, E& said.
Strategic Rationale for the Exit
The Abu Dhabi-based company said its decision to exit Vodafone reflected the "natural evolution" of its priorities to "sharpen its strategic focus on core businesses" while unlocking cash from the exit.
About the Buyer: Xavier Niel and Iliad Group
Niel is the founder and owner of French telecoms firm Iliad. Iliad Group did not immediately respond to a Reuters request for comment.
Transaction Process and Regulatory Steps
Block Trades and Acquisition Vehicle
E& said the shares would be sold simultaneously through off-market block trades to three financial institutions, which would hold them until the Niel family group's acquisition vehicle completed regulatory requirements.
Board Representation and Influence
It also said it would no longer seek to influence Vodafone's board or management, and that its board representative had stepped down as a non-executive director.
Response from Vodafone
There was no immediate statement from Vodafone on the stake sale.
Reporting Credits
(Reporting by Disha Mishra in Bengaluru; Editing by Subhranshu Sahu)
