DUBAI: Emirati telecommunications group e& said Friday it will sell its stake in Vodafone Group for $5.95 billion to a family investment group led by French billionaire Xavier Niel, ending the Abu Dhabi-based company’s investment in the British telecom giant.
The deal, announced Friday, values Vodafone shares at 112.5 pence each — a 15% premium over the stock’s last closing price of 97.76 pence. E& said the transaction would generate a net cash return of about $1.3 billion.
E& said the decision to exit its Vodafone holding reflected the “natural evolution” of the company’s strategic priorities, allowing it to “sharpen its strategic focus on core businesses” while freeing up cash from the sale.
Niel is the founder and owner of French telecommunications company Iliad. Iliad Group did not immediately respond to a request for comment from The Associated Press.
According to e&, the shares will be sold simultaneously through off-market block trades to three financial institutions. Those institutions will hold the shares until the acquisition vehicle for Niel’s family group completes required regulatory approvals.
E& also said it will no longer seek to influence Vodafone’s board or management. The company’s representative on Vodafone’s board has stepped down as a non-executive director, e& said.
