e& is considering acquisitions of telecoms companies abroad to broaden its revenue base and is keen on buying businesses that complement and add value to its consumer business.
The Abu Dhabi-based company, formerly known as Etisalat, is pursuing a two-pronged strategy of expanding its telecoms asset base and integrating emerging technologies and supporting the rapidly expanding start-up community.
Telecoms operators with strong balance sheets are increasingly seeking mergers and acquisitions to gain access to new markets and exchange expertise that could open up new markets.
M&A activity in the telecoms sector, however, slowed down in the first half of 2022, dropping by more than half to $41 billion from $88bn a year ago, according to consultancy Bain and Company.
The Europe, Middle East and Africa region accounted for the majority of global transaction value, at about 60 per cent in the first six months of the year.
The company acquired about 2.766 billion shares in UK-based Vodafone Group, representing 9.8 per cent of the latter’s issued share capital, making e& its largest shareholder.
Last year, e& raised its ownership in Etisalat Investment North Africa (Eina) to 100 per cent, increasing the company’s effective ownership in Morocco’s Maroc Telecom Group to 53 per cent from 48.4 per cent.
The strategy of e& will significantly be complemented by the launch of a new $250 million venture capital fund that aims to support start-up companies.
The company is also tapping into the metaverse with the unveiling of e& Universe, which is another building block in its strategy to become a global technology company.