The Competition Commission of India (CCI) approved Vega SAS’s plan to acquire a 16.2% Vodafone stake, advancing a deal expected to make the investor the telecom group’s largest shareholder.
The CCI said Vega is wholly owned by Maya SAS, a company incorporated under French law, and has no business operations in India. Vodafone’s presence in the country is through Vodafone Idea Limited, the regulator said. An Aug. 26 filing with the U.S. Securities and Exchange Commission identifies Xavier Niel as Maya SAS’s president. In 2023, the CCI approved an e& subsidiary’s plan to increase its Vodafone stake from 14.6% to less than 25%.
Vega agreed in July to buy 3,944,743,685 shares from Emirates Telecommunications Group Co. PJSC (e&). The block represents 16.21% of Vodafone’s share capital and 17.13% of its voting rights. Vega valued the purchase at about £4.4 billion (€5.1 billion). e& said the transfer to three financial institutions generated AED 21.5 billion in cash, with the dividend bringing total consideration to AED 21.9 billion (US$5.95 billion). The stated consideration totaled 112.5 pence per share, comprising about 110.5 pence in cash and a 2.02-pence dividend.
e& linked its decision to a review of its international investment portfolio and the end of its relationship agreement with Vodafone. Vega said it intends to hold the stake as a minority investor over the long term. EconoTimes previously reported how the sale contributed to e&’s nine-month profit.
Vega said financial institutions bought shares off market to hedge the deal, with the arrangements to be settled in shares after regulatory clearances. In a July 16 update, it projected settlement by the end of 2026. The update also disclosed an instrument tied to an additional 2.74% of Vodafone’s voting rights; Vega said the instruments could together represent 18.80% of share capital and 19.87% of voting rights after approvals and settlement.
An Aug. 26 Schedule 13D filing disclosed beneficial ownership of 9.9%, based on rights to acquire 2,287,892,576 shares through equity derivatives within 60 days. The filing said additional clearances were required for physical settlement above that level. The CCI said a detailed order would follow.
