(MENAFN- Trend News Agency)
Emirates Telecommunications Group Company PJSC, now known as
e&, has acquired a 9.8% stake in Vodafone for $4.4 billion, it
said on Saturday, Trend reports with reference to Reuters .
The move comes days after e& said it was looking to expand into
new markets in Africa, Europe and Asia and in areas outside
telecoms such as financial technology as its seeks to drive
Vodafone, like all mobile operators, has been struggling in its
more mature markets, where competition and regulation have pushed
Net debt at the group has reached 44.3 billion euros, and its
Chief Executive Nick Read is under pressure to simplify its
portfolio and improve returns after a more than 20% slide in its
share price since he took over in 2018.
Vodafone was not immediately available for comment.
United Arab Emirates-based e& said it had made the investment to
gain 'significant exposure to a world leader in connectivity and
e& said it had no intention of making an offer to buy Vodafone,
saying it is fully supportive of the company's current business
strategy and its board and existing management team.
'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,' said
CEO Hatem Dowidar.
The UAE firm recently separated its business into consumer
services-focused e& life, e& enterprise, providing digital services
to government and business, and telecoms arm Etisalat, which its
CEO said is the world's seventh largest by market
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