French telecoms tycoon Xavier Niel has agreed a deal to snap up e&’s 16.2 percent stake in UK telco giant Vodafone in a deal valued at around £4.4 billion ($6.1bn).

This agreement will see Niel become the largest shareholder in Vodafone.

The transaction is being carried out through Vega, an acquisition vehicle wholly owned by the Niel family group. Vega has acquired the stake at a cost of 110 pence per share.

Iliad founder Niel is already an existing investor in Vodafone, snapping up a 2.5 percent stake in Vodafone Group through his investment vehicle Atlas Investissement back in 2022.

He also has stakes in several other telecom companies, including ownership of Monaco-based Monaco Telecom, while his investment vehicle NJJ owns a 70 percent stake in Irish telco Eir.

“Vodafone is a compelling investment opportunity, underpinned by quality assets, ​strong brands, leadership positions and a diversified geographic footprint,” said Niel in a statement.

“We are confident Vodafone can deliver sustainable growth and strong cash flow generation over the long term and — as an anchor investor based in Europe — we are ready to contribute our deep sector expertise and operational knowhow to its future success.”

“Vega intends to be a committed, long-term shareholder and supportive partner to Vodafone. This investment underscores Vega’s confidence in Vodafone’s long-term growth and untapped value creation potential,” Vodafone noted.

UAE-based e& (formerly Etisalat) gradually built up its 16.2 percent stake over a series of months after the telco first acquired an initial 9.8 percent stake in Vodafone back in 2022 for $4.4bn ($5.9bn).

In total, e& had acquired 3,944,743,685 ordinary shares in Vodafone, noting that these shares will be sold simultaneously through off-market block trades to three financial institutions who will hold the shares until Vega completes regulatory requirements.

According to the carrier, the decision to sell the stake “reflects the natural evolution of its strategic priorities.” e& said it will instead focus on its core businesses.

The agreement comes amid a transformation at Vodafone under CEO Margherita Della Valle. During her tenure, the carrier has sold off multiple European businesses, including Spain and Italy, and has completed its merger in the UK with CK Hutchison’s Three. In May, the telco agreed to buy CK Hutchison’s 49 percent stake in the company for £4.3bn ($5.8bn).

The deal is subject to regulatory approvals.