Emirates Telecommunications Group Firm PJSC “e&” (Etisalat Group) on Saturday introduced the acquisition of roughly 2,766 million shares in Vodafone Group Plc aggregating to $4.4 billion. The shares signify 9.8% of Vodafone’s issued share capital. The transaction is in keeping with e&’s ambition to be a worldwide participant in telecom and expertise and to extend its publicity to worldwide markets.
The Emirati-based multinational telecom providers supplier’s expects the funding in the UK headquartered Vodafone to realize vital publicity to a world chief in connectivity and digital providers.
Hatem Dowidar, the Group CEO of e&, mentioned, “Vodafone is without doubt one of the main companies on the coronary heart of digital communications in Europe and Africa with a compelling enterprise providing important connectivity and digital providers.”
Dowidar mentioned, “Our funding represents a novel alternative to accumulate a big stake in one of many main and strongest world telecom manufacturers, and an organization that we all know effectively. We’re trying ahead to constructing a mutually helpful strategic partnership with Vodafone with the aim of driving worth creation for each our companies, exploring alternatives within the quickly growing world telecom market, and supporting the adoption of next-generation applied sciences.”
In its submitting on the Abu Dhabi Securities Alternate, e& mentioned that Vodafone’s sturdy popularity for being a number one digital-first operator, underpinned by its rigorous strategy to company governance and well-regulated world footprint, makes it a pretty alternative for e& at this present time.
e& believes this funding as extremely environment friendly use of its sturdy steadiness sheet at a compelling and enticing valuation with sturdy forex diversification advantages.
Based on e&, the deal gives a transparent alternative to understand future worth by way of potential capital positive factors and dividends. It could additionally result in attainable industrial partnerships within the areas of R&D, technological functions, and procurement.
“We see this funding as a very good alternative for e& and its shareholders as it’ll permit us to reinforce and develop our worldwide portfolio, in keeping with our strategic ambition,” Dowidar added.
e& mentioned they’re totally supportive of Vodafone’s Board and current administration staff and its present enterprise technique introduced in November 2021.
Additionally, e& doesn’t search Board illustration of Vodafone and mentioned, it “is assured in regards to the firm’s skill to unlock worth from its natural enterprise exercise and different potential strategic transactions.”
Moreover, e& plans to be a long-term shareholder in Vodafone and doesn’t plan to take any management or affect the enterprise operations of the corporate.
“e& plans to be a long-term and supportive shareholder in Vodafone and isn’t searching for to exert management or affect the corporate’s Board or administration staff. Equally, e& has no intention to make a proposal for Vodafone,” it mentioned within the submitting.
On Friday, at ADX, e& shares closed at 31.50 AED up by 1.86%.