LONDON — Xavier Niel has become Vodafone's largest shareholder after purchasing a 16% stake in the company for £4.4 billion. Niel acquired the stake through his family investment vehicle, Vega, which has been established solely to hold his Vodafone shares.

The acquisition occurred at a 15% premium compared to Vodafone's share price on Thursday, and shares in Vodafone subsequently increased by 12% on Friday. Niel stated that Vega intends to be a long-term minority shareholder in Vodafone. He characterized Vodafone as a "compelling investment opportunity." Niel said, "As a simpler, more focused business, Vodafone is ready for a new phase of growth and is well placed to unlock substantial untapped value across its European and African operations."

Carl Murdock-Smith, a telecoms analyst at Citi, noted similarities to a previous Niel investment. "We believe investors will look to what happened at Tele2 after a Niel investment vehicle became the largest shareholder – such as a 15% workforce reduction plan – as a potential framework of what to expect," Murdock-Smith said. He also stated, "Investors will be interested to see what level of board representation is requested by Mr Niel."

A spokesperson for Niel clarified that the transaction was solely a share purchase with no governance package attached. The spokesperson added, "As a significant long-term shareholder, assuming regulatory approvals are obtained, we would expect an appropriate level of engagement with the company over time." Niel does not currently have representation on Vodafone's board. He previously sold a 2.5% stake in Vodafone, held through his investment vehicle Atlas Investissement, in 2022.

Niel has a history of building telecoms businesses in France, Italy, Poland, and Iceland. Forbes estimates his net worth to be $15.5 billion (£11.5 billion). His partner is Delphine Arnault, the daughter of Bernard Arnault. Niel also previously owned the French newspaper Le Monde, selling almost all of his shares two years ago for €1 to the Fund for Press Independence.

Other entities have also held stakes in Vodafone. e& first acquired a stake worth £3.3 billion in Vodafone in 2022. e& had one seat on Vodafone's board and held the right to nominate a second board member if its shareholding exceeded 20%. Vodafone has undertaken a series of divestments, including its Italian and Spanish operations and its 50% stake in its Dutch joint venture. The company is also in the process of merging with Three to establish the UK's largest mobile operator. In May, Vodafone announced its intention to acquire CK Hutchison's 49% stake in their Vodafone-Three joint venture, aiming for full control of the company.