UAE telecoms group e& buys 9.8% stake in Vodafone for $4.4 bln

Emirates Telecommunications Group Firm PJSC, now generally known as e&, has acquired a 9.8% stake in Vodafone for $4.4 billion, it stated on Saturday.

The transfer comes days after e& stated it was trying to increase into new markets in Africa, Europe and Asia and in areas outdoors telecoms equivalent to monetary expertise as its seeks to drive development.

Vodafone, like all cell operators, has been struggling in its extra mature markets, the place competitors and regulation have pushed costs decrease.

Internet debt on the group has reached 44.3 billion euros ($46.1 billion), and its Chief Government Nick Learn is beneath strain to simplify its portfolio and enhance returns after a greater than 20% slide in its share value since he took over in 2018.

Vodafone stated it appeared ahead to constructing a long-term relationship with United Arab Emirates-based e&.

“We proceed to make good progress with our long-term strategic plans and can present an replace in our FY22 Outcomes announcement on 17 Might,” it stated in an announcement.

E& stated it had made the funding to realize “vital publicity to a world chief in connectivity and digital companies”.

It added it had no intention of creating a proposal to purchase Vodafone, saying it’s absolutely supportive of the corporate’s present enterprise technique and its board and present administration crew.

“We see this funding as an excellent alternative for e& and its shareholders as it would enable us to boost and develop our worldwide portfolio, in step with our strategic ambition,” stated CEO Hatem Dowidar.

The UAE agency lately separated its enterprise into shopper services-focused e& life, e& enterprise, offering digital companies to authorities and enterprise, and telecoms arm Etisalat, which its CEO stated is the world’s seventh largest by market capitalisation.

($1 = 0.9605 euros) (Reporting by Shivani Tanna in Bengaluru and Saeed Azhar in Dubai; Extra reporting by Kate Holton and Michael Holden in London; Modifying by Kirsten Donovan and Jan Harvey)

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