Credits By: The Hans India
UAE-based telecommunications company e& (formerly Etisalat) is strategically enhancing its partnership with Vodafone by increasing its stake in the British telecoms giant. In a recent interview with CNBC Arabia, e& CEO Hatem Dowidar revealed the company’s intention to raise its ownership stake in Vodafone to 20%, a move to solidify its collaboration and strengthen its presence in the global telecommunications landscape.
The journey towards this significant ownership increase began in May 2022 when e& first acquired a 9.8% stake in Vodafone for an impressive $4.4 billion. Since then, e& has been gradually building on its investment, and as of April, the company’s ownership had already reached 14.61%, as reported in an SEC filing.
However, e& is continuing. The telecommunications operator is actively pursuing the required regulatory approvals in the countries where Vodafone operates. These approvals are essential for formalizing the collaboration between the two companies, as they include agreements to govern their relations and open up the possibility for e& to elevate its stake to the desired 20% level.
Dowidar expressed optimism about the approval process, stating they hope to obtain the regulatory green light within 3 to 4 months. This timeline indicates e&’s eagerness to move forward with their plans and demonstrates their confidence in the potential benefits of the deepened partnership with Vodafone.
The strategic move to increase its stake in Vodafone reflects e&’s ambition to expand its global reach and influence in telecommunications. By aligning forces with Vodafone, one of the world’s leading telecom players, e& aims to harness both companies’ combined expertise, resources, and market presence to unlock new growth opportunities and innovations in the sector.
As the telecom industry continues to evolve rapidly, fueled by emerging technologies and increasing demands for seamless connectivity, this collaboration could pave the way for groundbreaking developments. Both companies bring unique strengths to the table, and by joining forces, they can better address the evolving needs of customers and create value for stakeholders across geographies.
While the headline and paragraph 1 of the initial report were corrected to clarify that e& is seeking to raise its stake in Vodafone to 20% rather than by 20%, the underlying significance of the move remains noteworthy. This strategic step by e& underscores the company’s commitment to embracing new horizons, staying ahead in the competitive telecom landscape, and dedication to fostering innovative solutions for customers worldwide.