Communications group Vodafone Group plc (LON:VOD) confirmed on Friday that Emirates Telecommunications Group Company PJSC ("e& Group") has agreed to sell its entire 16.21% stake in the company to Vega, an acquisition vehicle wholly owned by the Niel family group, for approximately USD5.95bn.

The transaction values the shares at 112.5 pence each, comprising about 110.5 pence in cash and Vodafone's final FY26 dividend of 2.02 pence per share.

Following the agreement, Vodafone and e& terminated their relationship agreement dated 11 May 2023, and e&'s board representative, Hatem Dowidar, resigned from Vodafone's board with immediate effect.

e& said the divestment follows a strategic review of its international investment portfolio and that it no longer seeks to influence Vodafone's board or management. The sale will generate approximately AED21.8bn (USD5.95bn) in cash proceeds, including the final FY26 dividend, resulting in a net cash return of about AED4.7bn (USD1.3bn).

The shares will initially be transferred through off-market block trades to three financial institutions while Vega completes regulatory requirements.

Completion of the transaction remains subject to customary closing conditions and is expected in the near future. e& said it appreciates its partnership with Vodafone and looks forward to exploring future opportunities for collaboration.