UAE’s biggest telecoms operator e& acquired a 9.8 per cent stake in British mobile carrier Vodafone Group for $4.4 billion as it seeks to diversify operations globally. Emirates Telecommunication Group, formerly known as Etisalat, has acquired approximately 2,766 million shares in Vodafone, it said in a statement to the Abu Dhabi Securities Exchange (ADX), where its shares are traded. The company, based in Abu Dhabi, was founded in 1976 and is the UAE’s oldest telecoms business. It has operations in nearly 16 countries across the Middle East, Asia and Africa, serving more than 156 million customers.
e& sees this investment as a highly efficient use of its strong balance sheet at a compelling and attractive valuation with strong currency diversification benefits. It provides a clear opportunity to realize future value through potential capital gains and dividends. It may also lead to possible commercial partnerships in the areas of R&D, technological applications, and procurement.