French businessman Xavier Niel plans to buy a 16.2% stake in Vodafone Group from Emirates Telecommunications for about 4.4 billion pounds, or $5.90 billion, to become the largest shareholder in the U.K. telecoms company.

Vega, an acquisition vehicle owned by the Niel family group, said the investment would be a long-term, strategic minority shareholding and that it didn't plan to make an offer for the entire share capital of Vodafone.

Vega said it was confident in Vodafone's untapped value creation potential and long-term growth, and that it would contact the U.K. government about the proposed investment.

The acquisition vehicle said the shares would be acquired through off-market block trades, meaning a private deal done outside the stock exchange to minimize market disruption.

As part of the agreement, Emirates Telecommunications, or e&, will still receive Vodafone's final dividend payout that is scheduled for payment on July 30.

Vodafone said in a statement that its relationship with e&, agreed upon in 2023, had been terminated. Hatem Dowidar, who was appointed to Vodafone's board as e&'s nominee director, has resigned from the board with immediate effect.

"As demonstrated by our past investments--including as minority investors in listed companies like Tele2 and Millicom--we have a proven track record of helping businesses to perform better and create substantial shareholder value," Niel said.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

July 10, 2026 02:49 ET (06:49 GMT)

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