Activist investor dumps Vodafone stake - Mobile World Live

Activist investor dumps Vodafone stake

20 JAN 2023
Vodafone

Cevian Capital reportedly offloaded its entire stake in Vodafone Group around a year after it emerged it had built up an undisclosed holding in the company, a sign it has given up on attempts to push a revival at the business.

Financial outlet This is Money claims Cevian Capital moved to cash-out of Vodafone after selling off a part of its holding in October 2022 due to rising interest rates, which it believed dampened the operator’s prospects.

Notably, Vodafone is going through something of a turbulent period, which could have played a part in Cevian Capital’s decision.

Vodafone recently completed a £1.6 billion sale of its Hungarian unit, while CEO of four years Nick Read announced his departure at the end of 2022.

Investors in and out
Cevian Capital ruffled feathers after it emerged it had built up a stake in Vodafone to become one of its ten-largest investors in January 2022.

The investor encouraged sweeping changes at Vodafone, pressing for a restructure to its portfolio, improved strategy in key markets and board changes, moves it argued would help to turn around the operator’s share price.

Fellow investor Coast Capital announced this month it had sold its position in Vodafone, stating there was no attractive model for the business.

Conversely, UAE-based operator e& this week upped its stake in Vodafone from 11 per cent to 12 per cent, citing an attractive valuation while reiterating the potential for future commercial tie-ups.

In September 2022, telecoms entrepreneur Xavier Niel also picked up a 2.5 per cent stake in Vodafone through his investment vehicle Atlas Investissement.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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