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UAE telecoms group e& buys 9.8% stake in Vodafone for $4.4 billion By Reuters



© Reuters. The Vodafone brand is seen on the Cell World Congress in Barcelona, Spain, February 28, 2018. REUTERS/Sergio Perez/File Picture

DUBAI (Reuters) -Emirates Telecommunications Group Firm PJSC, now often called e&, has acquired a 9.8% stake in Vodafone (NASDAQ:) for $4.4 billion, it stated on Saturday.

The transfer comes days after e& stated it was seeking to broaden into new markets in Africa, Europe and Asia and in areas exterior telecoms akin to monetary know-how as its seeks to drive progress.

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

Web debt on the group has reached 44.3 billion euros, and its Chief Government Nick Learn is below stress to simplify its portfolio and enhance returns after a greater than 20% slide in its share worth since he took over in 2018.

Vodafone was not instantly obtainable for remark.

United Arab Emirates-based e& stated it had made the funding to realize “vital publicity to a world chief in connectivity and digital providers”.

e& stated it had no intention of constructing a suggestion to purchase Vodafone, saying it’s absolutely supportive of the corporate’s present enterprise technique and its board and current administration crew.

“We see this funding as alternative for e& and its shareholders as it can permit us to reinforce and develop our worldwide portfolio, in keeping with our strategic ambition,” stated CEO Hatem Dowidar.

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

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