BANKING AND ECONOMY
Etisalat Group (e&), the UAE-based telecom company will acquire approximately 9.8% stakes in Vodafone Group Plc aggregating to $4.4 billion.
This 9.8% stake represents 2,766 million shares of Vodafone's issued share capital. The company is selling its shares as it has been struggling in its more mature markets, where competition and regulation have pushed prices lower, like other mobile operators.
The UAE company entered into this deal, as the company wants to expand into new markets and related areas such as financial technology.
The objective of Etisalat Group behind this acquisition is to be a global player in telecom and technology and to increase its exposure to international markets. With this investment, the company will gain significant exposure to a world leader in connectivity and digital services.
The company is to build a mutually beneficial strategic partnership with Vodafone with the goal of driving value creation for both our businesses, exploring opportunities in the rapidly developing global telecom market, and supporting the adoption of next-generation technologies.
e& believes this investment is a highly efficient use of its strong balance sheet at a compelling and attractive valuation with strong currency diversification benefits.