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E& Group Shares Rise 3.7% on $5.95 Billion Vodafone Stake Sale
Shares of UAE-based telecom operator E& Group (ADX:EAND) surged after the company announced it will sell its entire stake in Vodafone (LSE:VOD) for $5.95 billion. The buyer is an investment vehicle associated with the family of French billionaire Xavier Niel.
Details of the Transaction
E& Group stated that the sale will generate a net cash return of approximately $1.3 billion. The deal values Vodafone shares at 112.5 pence each, which represents a 15% premium over the stock's last closing price of 97.76 pence.
The divestment marks a significant strategic shift for E& Group, cashing out its position in the major UK-based telecommunications company.
AdMarket Reaction
Following the announcement, E& Group's shares rose 3.7% in early Friday trading to reach 20.38 dirhams, their highest level in more than four months. According to Investing.com, the move also marked the stock's largest single-day percentage gain in over eight months, reflecting strong investor approval of the deal.