The UAE’s biggest telecoms operator e& has acquired a 9.8 percent stake in British mobile carrier Vodafone Group for $4.4 billion (AED16.2 billion) as it seeks to diversify operations globally.
e&, which is the new name for the Etisalat Group, said it made the investment in Vodafone “to gain significant exposure to a world leader in connectivity and digital services”.
“Vodafone is one of the strongest and most globally recognised brands across the telecom industry. It is a pioneer of digital transformation, offering some of the most advanced technology and next-generation solutions,” e& said in a statement on Saturday to the Abu Dhabi Securities Exchange (ADX).
The transaction is aligned to e&’s ambitions to become a global player in telecoms and technology and to increase its exposure to international markets. Hatem Dowidar, Group CEO of e&, said: “Vodafone is one of the leading businesses at the heart of digital communications in Europe and Africa with a compelling business offering critical connectivity and digital services.”
He added that e& plans to be a long-term and supportive shareholder in Vodafone and is not seeking to exert control or influence the company’s board or management team. Similarly, e& has no intention to make an offer for Vodafone.
In February, the Etisalat Group, the UAE’s first and biggest telecom services provider, launched its new brand identity e& as it looks to transform itself into a global technology investment conglomerate.
It has operations in nearly 16 countries across the Middle East, Asia and Africa, serving more than 156 million customers.
“Vodafone’s reputation for being a digital-first operator, underpinned with its rigorous approach to corporate governance and well-regulated global footprint, makes it an attractive opportunity for e& at this current time”, the statement said.
In August last year, Etisalat acquired an additional stake in Morrocco’s Maroc Telecom Group increasing its effective ownership to 53 percent.
In April e& reported a 3.6 percent rise in first-quarter net profit which was supported by the growth in the number of subscribers. Its total subscribers reached 159 million at the end of first quarter – an increase of 2 percent over the same period last year.
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