UAE telecoms group buys 9.8% of Vodafone Int’l for $4.4B

E&, formerly known as Emirates Telecommunications Group PJSC, has acquired 9.8 percent of Vodafone’s shares for $4.4 billion, it said on Saturday.

The company offered about 130 pence ($1.59) per share in the stake as the price increased compared to Vodafone’s closing price of 117.82 pence on Friday.

The investment comes after e& said it would expand into new markets in Africa, Europe, and Asia and in areas outside telecoms such as financial technology as it aims to improve growth.

Moreover, Vodafone aims at building a long-term relationship with e&.

e& CEO Hatem Dowidar mentioned the positive return for the company due to the investment as it will enhance their international portfolio.

“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,” Dowidar said in a statement.

Vodafone’s net debt has reached 44.3 billion euros ($46.1 billion), and its Chief Executive Nick Read is under pressure to simplify its portfolio and improve returns after a more than 20 percent slide in its share price since he took over in 2018. Nevertheless, there is no intention of making an offer to buy Vodafone, e& added.