Emirates Telecommunications Group, better known as e&, said Friday it's cashing out of Vodafone in a big way. The Abu Dhabi-based telecom company is selling its entire stake in the British mobile giant for about $5.95 billion, ending a relationship that started with a bang a few years ago.
The deal sent Vodafone (VOD) shares up nearly 13% in premarket trading, as investors cheered the clarity and the premium price.
e& is selling its 3.94 billion ordinary shares — representing about 16.21% of Vodafone's issued share capital and 17.13% of voting rights — to Vega, an acquisition vehicle wholly owned by the Niel family group. The price: 112.5 British pence per share. That includes about 110.5 pence in cash from the buyer plus Vodafone's final fiscal 2026 dividend of 2.02 pence per share, which e& expects to collect on July 30.
As part of the exit, e& has terminated its Relationship Agreement with Vodafone, and its board representative has resigned as a non-executive director. The strategic review of e&'s international portfolio has led to this clean break.
The Mechanics of the Sale
The shares will be transferred through simultaneous off-market block trades to three financial institutions. These institutions will hold the shares temporarily while Vega goes through the regulatory approval process. Once the transfer to the institutions is complete, e& expects to receive cash proceeds of about 21.8 billion dirham ($5.95 billion), including the dividend. The company says the transaction will generate a net cash return of about 4.7 billion dirham ($1.3 billion).
What This Means for Vodafone Stock
Vodafone shares are trading 5.8% above their 20-day simple moving average of $13.98 and slightly above the 50-day moving average of $14.78. But they're still 1.1% below the 100-day moving average of $14.95, so the intermediate-term trend hasn't fully turned positive yet.
The moving average setup is a bit mixed. The 20-day moving average is below the 50-day, reflecting recent weakness. But the 50-day remains above the 200-day, suggesting the longer-term trend is still intact. Traders are watching resistance near $15.50 — a move above that could ignite bullish momentum. On the downside, support sits around $14.50, and holding that level could keep the current rebound alive.
As of Friday's premarket, Vodafone shares were up 12.69% at $14.74, according to market data.
