Vodafone: Buybacks boost UAE’s sovereign wealth fund’s stake

According to a recent update, the sovereign wealth fund of the United Arab Emirates now owns 15 per cent of Vodafone.

While the Emirates Investment Authority (EIA) has not acquired any more shares in the communications giant, Vodafone’s ongoing share buyback has reduced the number of shares outstanding, boosting EIA’s position on the share register.

In March, the firm said it would return €4bn (£3.4bn) to shareholders as part of a broader capital allocation review to appease jittery shareholders following asset sales. 

It kicked off the return in May with an initial €500m (£430m) share buyback and reiterated plans to return €2bn to shareholders over the next 12 months.

Other large shareholders in the FTSE 100 business include The Vangaurd Group, Norges Bank and Blackrock.

Also last month, Vodafone launched the next stage of its share repurchase programme worth up to €500m (£430m).

Vodafone and Three still waiting on £15bn merger decision

The move from EIA comes after it emerged that Vodafone and Three will have to wait longer before finding out if a £15bn planned merger has the seal of approval from the UK’s competition regulator.

The Competition and Markets Authority (CMA) said in August that it had extended the period of time it needs to investigate the deal.

The plans to combine have been under scrutiny since being announced last summer, delaying what would create the UK’s largest mobile phone network.

The two mobile firms say the deal will allow them to invest more in their services and better compete with major rivals, EE operator BT and Virgin Media-O2.

In July, Vodafone offloaded a 10 per cent stake in Vantage Towers for €1.3 (£1.1bn) as it continued a sell off of assets to reduce its debt.

Correction: This article previously suggested the EIA had increased its shareholding in the company by adding to its position. The EIA has not acquired any more shares in Vodafone.