Robert Besser
16 May 2022, 17:26 GMT+10
DUBAI, UAE: After stating that it was looking to expand into new markets and related sectors, such as financial technology, UAE-based telecoms company E& bought a 9.8 percent stake in Vodafone, worth $4.4 billion.
Previously known as Emirates Telecommunications Group, E& said it did not plan to make an offer for the whole of Vodafone, though its investment it aimed to gain "significant exposure to a world leader in connectivity and digital services."
Like other mobile operators, Vodafone has been struggling in its more mature markets, due to competition and regulations pushing prices lower, with its net debt now reaching $46.1 billion.
Since he took over in 2018, the company's chief executive, Nick Read, has been under pressure to simplify its portfolio and improve returns after a more than 20 percent slide in its share price.
In a statement, Vodafone said it looked forward to building a long-term relationship with E&, adding, "We continue to make good progress with our long-term strategic plans and will provide an update in our FY22 results announcement on 17 May."
According to E&, it is fully supportive of the company's current business strategy and its board and existing management team.
Meanwhile, the Emirati company's CEO, Hatem Dowidar, said, "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."
However, the investment represents less than 6 percent of E&'s market capitalization, of which it also has a healthy balance sheet with net debt/EBITDA at 0.41 times, he added.
Get a daily dose of Scotland Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Scotland Star.
More InformationMOSCOW, Russia: The UK newspaper, the Telegraph, has been blocked in Russia, following a request from the Russian prosecutor-general.The TASS ...
LONDON, England: Surging food prices in the UK pushed consumer price inflation to 9.1 percent last month, a 40-year record ...
LONDON, England: Prices for British homes this month rose at the slowest rate since January, as the cost of living ...
LONDON, England: UK General Patrick Sanders, the new Chief of the General Staff, has told troops that Britain must be ...
Moscow says the troops were stationed inside a zinc factoryRussian aircraft have struck a zinc factory in Donbass, killing dozens ...
Beijing [China], June 25 (ANI): Ten years ago, thousands of Hong Kong students took to the streets to protest against ...
MOSCOW, Russia: The UK newspaper, the Telegraph, has been blocked in Russia, following a request from the Russian prosecutor-general.The TASS ...
LAHORE, Pakistan - An Airbus 320 carrying 171 passengers narrowly avoided an accident at Allama Iqbal International Airport, Pakistan's second-largest ...
WASHINGTON, DC - U.S. President Joe Biden on Friday vowed to "do all in my power" to protect a woman's ...
YANGON, Myanmar - According to military-run media, a junta delegation discussed nuclear technology collaboration with a Russian state-owned atomic energy ...
DHAKA, Bangladesh - The United States Agency for International Development (USAID) is providing more than Tk2.3 crore in emergency funding ...
PHNOM PENH, Cambodia: Cambodian villagers on the Mekong River have caught a stingray fish weighing 661 pounds, which is the ...