- The US $4.4 billion deal is expected to boost the value of the global Vodafone Group to more than $45 billion.
Emirates Telecommunication Group Company PJSC (Etisalat) has announced its purchase of a 9.8 percent stake in Vodafone International Group. The US $4.4 billion deal is expected to boost the value of the global Vodafone Group to more than $45 billion.
Etisalat statement said that the objective behind the investment is to gain larger exposure in the field of communication and digital services. The company had recently revealed that it was exploring new markets in Africa, Europe and Asia, and areas outside telecoms such as financial technology, to drive growth.
Hatem Dowidar, CEO of Etisalat explained that this investment was viewed as a good opportunity for the company and its shareholders to enhance and develop its international portfolio in line with its strategic ambition. The Emirati group clarified that it has no plan currently of making an offer to buy Vodafone, and fully supported the company’s existing board of directors, the management team and its business strategy.
Set up in 1976, Etisalat launched the first mobile phone network in the Middle East in 1982. In 1983, the UAE government acquired 60 percent of the company’s shares. The 40 percent of the company is held by public shares. Mainly company’s business is focussed on electronic services including consumer and electronic services, and projects to provide digital services to the government and companies.
During the first quarter of 2022, the net profit of the Emirates Group rose by 3.6 percent year on year at $653.5 million.
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