UAE telecom group acquires 9.8% stake in Vodafone

United Arab Emirates-based telecoms company e& (Etisalat Group) has bought a 9.8% stake in Vodafone for $4.4 billion. E& is known as Emirates Telecommunications Group and had made the investment to gain significant exposure to a world leader in connectivity and digital services.

The company said it is fully supportive of the company's current business strategy and its board and existing management team. The deal provides a clear opportunity to realize future value through potential capital gains and dividends.

Hatem Dowidar, the Group CEO of e&, said, “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.”

He further added, “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.”

The deal may also lead to possible commercial partnerships in the areas of R&D, technological applications, and procurement. “We see this investment as a good opportunity for e& and its shareholders as it will allow us to enhance and develop our international portfolio, in line with our strategic ambition,” Dowidar said.