As Vodafone hands over £3.3bn in shares, E& (previously known as Etisalat) has quickly become Vodafone’s largest shareholder. E&, a state-controlled Middle Eastern telecoms group, has become Vodafone’s biggest shareholder holding a whopping 10% share in the UK’s largest mobile phone provider.
As of Friday 27 May 2022, Vodafone shares were sitting at 0.9p at 117.82p, bringing their company value to £33bn. E& invested in Vodafone to create massive awareness alongside one of the world’s biggest leaders in connectivity and digital services. Their intention was not to initiate a takeover bid. Vodafone has shared that it is looking forward to its partnership with E& and that this new venture fits well into the plans of the Vodafone brand.
E& is based in Abu Dhabi and has created a specialised division to manage their Vodafone shares, named Atlas 2022. They intend to play a supportive role to Vodafone; making it clear that they are in it for the long haul, they are not looking to enter into a power struggle with the board, or its management.
Vodafone services an array of clients, including some government departments such as the Ministry of Justice. This means that any organisation wanting to potentially take over Vodafone would be put under the microscope for the highest of scrutiny. Should a potential buyer of Vodafone ever become a concern for the government or pose a threat to national security, the government has the right to intercede such a deal due to its ability to step in under the National Security and Investment Act. Vodafone recently announced that it was in communication with some of E&’s largest rivals throughout Europe. This prompted the Abu Dhabi based company to start the process of becoming the largest stakeholder in the UK mobile phone provider.
Nick Read, Vodafone’s chief executive, is being forced to simplify sell-off subsidiaries and raise financial return. Since he took over the position in 2018, the overall share price has dropped by 20%.
Hatem Dowidar, chief executive of E& and former Vodafone executive, said that he is excited about the future relationship between E& and Vodafone. He feels that they are working towards a symbiotic and cooperative partnership whilst paving the way for the ever-evolving global telecoms market.
Happy Telecom can assist you and your business with everything from telecommunication protection to solution and strategy-based preparation. We can assist you and your business with up-to-date upgrades that will provide your business with the latest technology and industry standards. We have an option suited for every business, contact us today and let us help you find the services and strategies that will benefit your organisation.
Source: Guardian
By: Alex Moss
CONTACT US FOR ALL YOUR TELECOMMUNICATIONS NEEDS
We Operate Across The United Kingdom. Get In Touch Today.
For Happy Telecom IT & Specific Support: itsupport@happytelecom.co.uk
For Happy Telecom Faults: networksupport@happytlecom.co.uk
For Happy Telecom Billing: billing@happytelecom.co.uk
Or if you would like to email Happy Telecom directly: alan@happytelecom.co.uk