Vodafone Group Plc (VOD) has formally terminated its relationship agreement with Emirates Telecommunications Group Company PJSC, known as e&, ending a significant corporate partnership.
The original relationship agreement between the two companies was dated 11 May 2023, and its termination marks a clear shift in Vodafone’s shareholder structure going forward.
E& has signed a binding agreement to sell its entire Vodafone shareholding to Vega, an acquisition vehicle wholly owned by the Niel family group.
The disposal covers 3,944,743,685 ordinary shares in Vodafone, representing approximately 16.21% of the company’s total share capital.
Those shares also account for around 17.13% of Vodafone’s total voting rights, making this a substantial transfer of influence within the company.
The total consideration agreed for the transaction is 112.5 pence per share, combining a cash payment and a final dividend component.
Of that total, approximately 110.5 pence will be paid in cash by the buyer, Vega, with the remaining 2.02 pence representing a final dividend per share.
Following the termination of the relationship agreement, Hatem Dowidar, who had served on the Vodafone board as e&’s nominee director, has resigned with immediate effect.
Dowidar’s departure leaves a vacancy on the Vodafone board as the company navigates this transition to a new major shareholder.
At the time of the last market close, Vodafone Group shares were trading at 97.76 pence, down 0.22%, sitting notably below the agreed disposal price of 112.5 pence per share.
The deal represents a meaningful premium for e& relative to the prevailing market price, reflecting the strategic value attached to such a significant block of shares.
The Niel family group, through its Vega acquisition vehicle, now emerges as a major new force in Vodafone’s shareholder register, raising questions about future strategic direction for the British telecoms giant.
