Extremalby
Menu
  • Business
    • Entrepreneurship
    • Personal Finance
  • Entertainment
    • Books
    • Celebrity
    • Music
    • TV
  • Sports
    • Golf
    • NCAAB
    • SOCCER
  • Technology
    • Artificial intelligence
    • Internet
    • Mobile
  • Contact Us
  • About Us
  • Important Links
    • Cookie Policy US
    • DMCA
    • Terms and Conditions
    • Privacy Policy
Menu

UAE telecoms group confirms £3.3bn raid on Vodafone | Vodafone

Posted on May 15, 2022 by mangakiko

A Middle Eastern telecoms group has taken a near-10% stake in Vodafone as the UK mobile phone company comes under pressure for a business shake-up.

The state-controlled Emirates Telecommunications Group, which recently rebranded from Etisalat to e&, is now Vodafone’s biggest shareholder after confirming a £3.3bn raid on the UK group on Saturday.

E& said it had made the investment “to gain significant exposure to a world leader in connectivity and digital services” and did not intend to launch a takeover bid, a statement which blocks the company from making such a move for at least six months.

Vodafone claims on its website to supply government departments including the Ministry of Justice, meaning any new owner would have to be carefully vetted.

The Abu Dhabi-based group, which has created a special holding company, Atlas 2022, to control the Vodafone stake, said it planned to be a “long-term and supportive shareholder in Vodafone and is not seeking to exert control or influence the company’s board or management team”.

Vodafone’s chief executive, Nick Read, is under pressure to simplify sell off subsidiaries and improve returns after a more than 20% slide in its share price since he took over in 2018.

E&’s involvement comes after Vodafone revealed that it was in talks with rivals in the UK, Spain, Germany and Italy, in an apparent response to pressure from Cevian, Europe’s largest activist investor, which took a stake in Vodafone and called for a business shake- up.

Cevian, which is headquartered in Sweden and is known for taking longer-term positions to turn around businesses without taking aggressive action, is seeking a consolidation of Vodafone’s sprawling empire to focus on its most profitable markets and inject more telecoms experience at board level.

Hatem Dowidar, the chief executive of E& who is a former Vodafone executive, added that he was “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 telecoms market and supporting the adoption of next-generation technologies”.

Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk

E& recently bought a controlling stake in Maroc Telecom and acquired the Emirati online grocery market ElGrocer as it aims to evolve into a global technology investment conglomerate.

Vodafone, which is due to update the City on its full-year results on Tuesday, said that it looked forward to “building a long-term relationship with Etisalat” and that it continued “to make good progress with our long-term strategic plans ”.

Vodafone shares closed down 0.9p at 117.82p on Friday, valuing the company at £33bn.

Share this:

  • Twitter
  • Facebook
  • More
  • Reddit
  • Pinterest
  • Telegram
  • WhatsApp

Related

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • Best Forex Trading Market Internationally
  • All Essential Tips About Forex Trading
  • How to Invest In Forex Trading in 2023
  • The importance of modern forex levels today 2022
  • What about forex trading and how to deal with it step by step?

Recent Comments

No comments to show.

Archives

  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • June 2022
  • May 2022

Categories

  • Artificial intelligence
  • Books
  • Business
  • Celebrity
  • Entertainment
  • Entrepreneurship
  • Environment
  • forex
  • Golf
  • Internet
  • Mobile
  • Music
  • NCAAB
  • Personal Finance
  • Physics
  • SOCCER
  • Sports
  • Technology
  • TV
©2023 Extremalby | WordPress Theme by Superbthemes.com