Emirati company e& acquires 9.8% of Vodafone for 4.4 billion dollars – 05/14/2022 at 18:38


EMIRATED COMPANY E& ACQUIRES 9.8% OF VODAFONE FOR $4.4 BILLION

by Saeed Azhar and Kate Holton

DUBAI/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 in new markets.

Formerly known as Emirates Telecommunications Group, e& said it had made the investment to gain “significant exposure to a global leader in connectivity and digital services”, adding that it had no intention of making an offer for the company. 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 reaches 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 reports 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 enhance and grow our international portfolio, in line with our strategic ambition,” said CEO Hatem Dowidar.

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

(French version Benjamin Mallet)



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