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Dubai, Could 15 (IANS) Etisalat, the UAE’s greatest telecom operator, has acquired a 9.8 per cent stake in British cell provider Vodafone Group (LON:) for $4.4 billion because it seeks to diversify operations globally.
Emirates Telecommunication Group, previously generally known as Etisalat and now rebranded as e&, has acquired roughly 2,766 million shares in Vodafone, The Nationwide reported.
“Vodafone is without doubt one of the main companies on the coronary heart of digital communications in Europe and Africa with a compelling enterprise providing important connectivity and digital providers,” Hatem Dowidar, group chief government of Etisalat, mentioned.
“Our funding represents a novel alternative to accumulate a big stake in one of many main and strongest world telecom manufacturers, and an organization that we all know properly. We’re wanting ahead to constructing a mutually useful strategic partnership with Vodafone with the purpose of driving worth creation for each our companies, exploring alternatives within the quickly creating world telecom market and supporting the adoption of next-generation applied sciences.”
The corporate, based mostly in Abu Dhabi, was based in 1976 and is the UAE’s oldest telecom enterprise. It has operations in practically 16 international locations throughout the Center East, Asia and Africa, serving greater than 156 million prospects.
In February this 12 months, Etisalat rebranded because it sought to rework into a worldwide know-how funding conglomerate.
The UAE telecom operator doesn’t search board illustration on Vodafone and doesn’t intend to make a suggestion for the corporate, the assertion mentioned.
“Etisalat sees this funding as a extremely environment friendly use of its sturdy stability sheet at a compelling and engaging valuation with sturdy foreign money diversification advantages. It gives a transparent alternative to grasp future worth by means of potential capital positive factors and dividends. It could additionally result in potential business partnerships within the areas of R&D, technological purposes and procurement,” in accordance with the assertion.
Vodafone’s fame for being a digital-first operator, underpinned with its rigorous method to company governance and well-regulated world footprint, makes it a lovely alternative for e& at this present time, the assertion mentioned.
–IANS
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