Niel's Vodafone Stake
Xavier Niel Secures $5.9 Billion Stake, Becoming Vodafone's Largest Shareholder
French billionaire Xavier Niel plans to buy a 16.2% stake in Vodafone Group for around £4.4 billion, or $5.9 billion, according to MarketScreener. The deal would make him the company's largest single shareholder. He is buying the stake from Emirates Telecommunication, also known as e&, which has been selling down its Vodafone position.
The same week brought another major deal. Apollo has agreed to buy a minority stake in Bayer's contraceptives business for 3 billion euros, or about $3.4 billion, MarketScreener reported. Both deals signal a busy moment for big-ticket corporate transactions.
Niel Bets Big on Vodafone at a Discount
Xavier Niel is a French tech mogul best known for building the telecom giant Iliad. His plan to buy 16.2% of Vodafone for $5.9 billion would give him more sway over the struggling British carrier than any other investor. The shares are being sold by e&, the Abu Dhabi-based telecom group, according to MarketScreener.
Vodafone has had a rough few years. Its stock has fallen sharply, making it a cheaper buy now than it was at its peak. Niel's move looks like a bet that the company can turn things around. Buying a large block from a willing seller also likely means he got a favorable price.
Emirates Telecom Exits as Vodafone Struggles to Recover
e& built up its Vodafone stake aggressively starting in 2022. At its peak, the Gulf telecom group held close to 15% of the company. Selling a 16.2% block suggests e& has been adding to — and is now exiting — a position that never delivered the strategic partnership it once sought, according to MarketScreener.
Vodafone has been restructuring under CEO Margherita Della Valle. The company sold its Spanish and Italian operations and merged its UK business with Three UK. Those moves have yet to fully lift the share price, leaving the door open for a new major shareholder like Niel to step in.
Apollo Pays $3.4 Billion for Slice of Bayer Birth Control Unit
In a separate deal, Apollo has agreed to pay 3 billion euros for a minority stake in a new company that will hold Bayer's long-acting reversible contraceptives business, The Wall Street Journal reported. Bayer will use the fresh equity capital to help pay down its heavy debt load.
Long-acting reversible contraceptives — devices like IUDs and implants — are a stable, cash-generating business. Apollo's managed funds and affiliates will hold the minority stake in the new entity. Bayer keeps control but raises money without selling the whole unit, according to MarketScreener.
Big Stakes, Big Pressure: What These Deals Mean
Both deals show private capital moving into big, established companies under pressure. Bayer has struggled since its $63 billion purchase of Monsanto in 2018 saddled it with lawsuits and debt. Selling a stake in a profitable unit is one way to raise cash without a full breakup.
Niel's Vodafone bet is different — it's an equity stake in a public company, not a private carve-out. But the logic is similar: a patient investor sees more value than the market currently gives credit for. With $5.9 billion on the line, Niel clearly believes Vodafone's worst days are behind it.
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