e& is exiting Vodafone with a $5.95 billion stake sale that turns a three-year board-level investment into cash and leaves its European telecoms exposure without a disclosed successor deal.

The UAE telecoms and technology company said it signed a binding agreement to sell its full 16.21 per cent Vodafone Group holding to Vega, an acquisition vehicle wholly owned by the Niel family group.

The transaction includes around 3.94 billion Vodafone shares and is expected to deliver roughly Dh4.7 billion in net cash return to e&.

e& Sells 16.21 Per Cent Vodafone Stake To Vega

e& said the divestment follows a strategic review of its international investment portfolio.

The company also said it terminated its relationship agreement with Vodafone and that its board representative stepped down as a non-executive director of the British telecoms group.

The company said the investment began in May 2022, when e& acquired a 9.8 per cent Vodafone stake for $4.4 billion.

The company said it later raised the holding to 11 per cent in December 2022, 12 per cent in January 2023, 14 per cent the following month and more than 16 per cent before the exit.

The transaction is not being presented as a full retreat from telecoms partnerships. e& said it would explore future opportunities with Vodafone to collaborate in ways that create mutual value.

The disclosed deal, however, removes the equity position and ends the formal governance link that had given e& board-level exposure to Vodafone.

The Vodafone Sale Carries A 13 Per Cent Premium

e& placed the agreed price 13 per cent above Vodafone's market price, with a final 2026 dividend due later in July included in the transaction.

At completion of the transfer to financial institutions, the transaction is expected to generate proceeds of about Dh21.8 billion, or $5.95 billion, including dividends.

The sale mechanics keep part of the process outside the public record for now. e& said the Vodafone shares would be sold simultaneously through off-market block trades to three financial institutions.

Those institutions will hold the shares until Vega completes regulatory requirements.

The company said completion remains subject to customary closing conditions and is expected in the near future.

It did not give a precise closing date or identify the financial institutions handling the interim shareholding.

Careem Sale Adds To The Capital Refocus

The Vodafone divestment follows another portfolio move by the Abu Dhabi-listed group.

In June, e& completed a $100 million sale to Uber covering 12.5 per cent of its Careem Technologies holding, again citing a stronger focus on core businesses and disciplined capital allocation priorities.

Together, the disclosed transactions show e& reducing selected non-core holdings while preserving its broader telecoms and technology positioning.

The company described the Vodafone exit as a way to sharpen its strategic focus on core businesses, rather than as a withdrawal from international telecoms activity.

The capital signal is clearer than the redeployment plan. e& has named the proceeds, premium and buyer structure for the Vodafone exit, but it has not yet attached the cash return to a named acquisition, network investment, digital-services expansion or shareholder-return programme.

First-Quarter Profit Fell After Khazna Gain Comparison

e& also disclosed recent operating context for the portfolio decision.

In the first quarter of 2026, the ADX-listed company put revenue at Dh19.4 billion, up about 15 per cent from a year earlier. e& said net profit attributable to shareholders dropped by more than 46 per cent to Dh2.88 billion, mainly because the prior-year period included a gain from the sale of Khazna.

Excluding the Khazna comparison, e& said net income rose by 3.9 per cent. e& framed the Vodafone sale as a capital-allocation move rather than an immediate operating shortfall.

The Vodafone exit remains dependent on regulatory requirements and closing conditions. e& did not disclose the three financial institutions that will hold the shares before Vega completion, the exact closing date, the specific regulatory approvals required or a named use of proceeds for the Dh4.7 billion expected net cash return.