𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

French billionaire businessman Xavier Niel will become the biggest shareholder in Vodafone after buying a £4.4 billion stake in the mobile giant.

Mr Niel’s family investment vehicle Vega has agreed to acquire an approximately 16.2% shareholding from United Arab Emirates (UAE) telecoms group E&.

The telecoms tycoon is the founder and controlling shareholder of Iliad Group, which provides internet and mobile services in France, Italy and Poland.

Iliad tried three years ago to swoop in on Vodafone by offering about £9 billion for its Italian operations, but the approach was ultimately rejected.

Mr Niel’s family telecom investments and businesses span 26 countries, including minority investments in Swedish group Tele2 and Latin American telecoms provider Millicom.

The French businessman and his family have an estimated wealth of 15.6 billion US dollars (£11.6 billion), according to the latest Forbes data.

Mr Niel said: “Vodafone is a compelling investment opportunity, underpinned by quality assets, strong brands, leadership positions and a diversified geographic footprint.

“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.”

The takeover comes after a period of significant change for Vodafone under chief executive Margherita Della Valle, who has been leading a push to focus on its biggest markets in Germany and the UK, as well as Africa, while pulling out of countries where it has a smaller presence.

It recently announced a £4.3 billion deal to take full ownership of its VodafoneThree business in the UK after agreeing to buy out partner CK Hutchison.

The VodafoneThree business was formed last year after the merger of mobile operators Vodafone and Three in the UK, with Vodafone taking a 51% stake in the joint venture and Hong Kong-based Three owner CK Hutchison taking 49%.

VodafoneThree became the UK’s largest mobile operator following the deal and is one of the country’s fastest-growing broadband providers.

Mr Niel’s Vega acquisition vehicle was set up solely for the purpose of holding the shares in Vodafone.

Vodafone said it has ended its relationship with E& following the announcement and its board representative has resigned.