Emirates Telecommunications Group Company PJSC “e&” (Etisalat Group) has acquired approximately 2,766 million shares in Vodafone Group Plc aggregating to $4.4 billion. The shares represent 9.8 per cent of Vodafone’s issued share capital. The transaction is in line with e&’s ambition to be a global player in telecom and technology and to increase its exposure to international markets.
The United Arab Emirates (UAE)-based telco, Emirates Telecommunication Group’s 9.8 per cent stake purchase in Vodafone Group Plc will give the former an indirect entry into the Indian telecom market. Vodafone owns 47 per cent stake in Vodafone Idea and the current acquisition of around 10 per cent in Vodafone will give Etisalat an indirect stake of 4.67 per cent stake in the Indian telecom entity.
In its filing on the Abu Dhabi Securities Exchange, Etisalat Group said that Vodafone’s strong reputation for being a leading digital-first operator, underpinned by its rigorous approach to corporate governance and well-regulated global footprint, makes it an attractive opportunity for e& at this current time.
According to Etisalat Group, the deal provides a clear opportunity to realise future value through potential capital gains and dividends. It may also lead to possible commercial partnerships in the areas of research and development (R&D), technological applications, and procurement.
