- The UAE-based telecommunications firm aims to unlock full exposure to Vodafone – the world leader in connectivity and digital services
- It pursues expansion into new markets across Europe, Africa, and Asia
Emirates Telecommunications Group Company PJSC, currently known as e&, has announced the acquisition of a 9.8% stake in Vodafone via deal worth $4.4 billion.
The latest development follows Emirate Telecommunication’s announcement made several days ago indicating plans to expand across new marketspaces of Europe, Africa, and Asia to move beyond telecom expertise and tap into trending segments such as financial technology to unlock growth.
According to the UAE-based telecommunications company, the latest investment will help gain substantial exposure to a global leader with deep expertise in connectivity and digital services.
With no intention to takeover Vodafone, e& makes its stance perfectly clear suggesting that it is fully committed to support the company’s board, their existing management team, and its current business goals & strategy.
Speaking on the recent investment, Hatem Dowidar, CEO of Emirates Telecommunications, mentioned that the deal offers e& and its shareholders a lucrative opportunity to focus on development and enhancement of its international portfolio, building upon their strategic ambition.
More recently, UAE’s e& divided its business into two segments – the consumer services-centric e& life, and e& enterprise.
With this, the telecom firm aims to offer digital services to a spectrum of businesses including government and its own subsidiary Etisalat, which according to the CEO is the seventh largest in the world in terms of market capitalization.
Meanwhile, Vodafone, similar to its peers, has been facing a critical challenge within its more mature markets as a result of excessive competition and regulation that have shunned prices to a lower level.
The UK-based telecom provider quoted in its statement, that the company’s longstanding goal to build long-term relations with e& will be upheld over the coming future in line with its long-term strategy and will release the updated FY22 results on 17 May.