Emirati company e& acquires 9.8% of Vodafone for $4.4 billion


DUBA/LONDON (Reuters) – United Arab Emirates-based telecommunications company e& has acquired a 9.8% stake in Vodafone for $4.4 billion, days after saying it was looking to expand into new markets.

Formerly known as Emirates Telecommunications Group, e& said it made the investment to gain “meaningful exposure to a world leader in connectivity and digital services”, adding that it had no intention of bidding for the set of Vodafone.

Like other mobile operators, Vodafone has struggled in its mature markets, where competition and regulation have driven prices down.

The group’s net debt has reached 44.3 billion euros ($46.1 billion) and its chief executive Nick Read is under pressure to simplify the portfolio and improve Vodafone’s profitability after a share price drop of more than 20%. of his work since taking office in 2018.

Vodafone said it was looking forward to building a long-term relationship with e& and said it would provide an update on the progress of its long-term strategic plan when it releases its 2022 results on May 17.

E& said it fully supports Vodafone’s current business strategy, as well as its existing board and management team.

“We see this investment as a good opportunity for e& and its shareholders as it will allow us to improve and grow our international portfolio, in line with our strategic ambition,” said CEO Hatem Dowidar.

The Mirati company has recently split its activities between e& life, focused on consumer services, e& enterprise, a provider of digital services to government and enterprises, and the Etisalat telecom branch which, according to its CEO, is the world’s seventh largest in terms of market capitalization.

(French version Benjamin Mallet)

by Saeed Azhar and Kate Holton



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