E& added that it has no intention of making an offer to acquire Vodafone Group as a whole, and is not looking for board representation
UAE-based telecom e& (formerly Etisalat Group) has acquired a 9.8% stake in international telecom Vodafone Group Plc for $4.4 billion as it pushes plans to expand globally and into other tech fields.
In a statement about the acquisition, e& stated that the investment would allow it to gain "significant exposure to a world leader in connectivity and digital services."
E& added that it has no intention of making an offer to acquire Vodafone Group as a whole, and is not looking for board representation.
“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,” Hatem Dowidar, group chief executive of e&, said.
E&, formerly operated as Etisalat Group, recently separated its business into E& Life which focuses on consumer services, and E& enterprise which sells to government and businesses. This is part of the group’s plans to expand globally and enter new technology fields.
Read more on the rebrand > Etisalat Group rebrands as it looks towards the future
“Our investment represents a unique opportunity to acquire a significant stake in one of the leading and strongest global telecom brands, and a company that we know well. We are looking forward to building a mutually beneficial strategic partnership with Vodafone with the goal of driving value creation for both our businesses, exploring opportunities in the rapidly developing global telecom market and supporting the adoption of next-generation technologies.”
Vodafone has been facing difficulties in recent years, largely due to debt and significant pressure to improve its margins.
The net debt for the group recently hit €44.3 billion ($46.1 billion), with a share price dip of 20% since current chief executive Nick Read took the reins in 2018, reported Reuters.
Vodafone said it looked forward to building a long-term relationship with e&. "We continue to make good progress with our long-term strategic plans and will provide an update in our FY22 results announcement on 17 May," it said in a statement.
