16 June 2022

Emirates Telecommunications Group has acquired a 9.8% stake in British carrier Vodafone for US$4.4bn, making it the largest shareholder in the company.

The state-controlled UAE group, formerly known as Etisalat and now rebranded e&, said the investment allowed it to “gain significant exposure to a world leader in connectivity and digital services”. Furthermore, the investor said the transaction provided a “compelling and attractive valuation”.

The Abu Dhabi-listed group said it planned to be a long-term shareholder in Vodafone and that there were currently no plans to make an offer to purchase the mobile network operator outright.

“We are looking forward to building 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,” Hatem Dowidar, chief executive, said in a statement.

For its part, Vodafone said it looked forward to building a long-term relationship with its new major shareholder.

The purchase pushes e&’s stake in Vodafone ahead of BlackRock Inc., the Vanguard Group and HSBC Holdings, according to Bloomberg data.