Emirates Telecommunications Group Company (e& formerly Etisalat Group) has now confirmed the acquisition of additional shares in the British telecoms giant, Vodafone Group. In a stock market statement, e& indicated the purchase of additional shares had been completed on January 17, 2023.
Emirates Telecommunications Group's stake in Vodafone Group is now increased to an aggregate of 3,272.3 million shares, representing 12.0% of Vodafone's issued share capital (excluding treasury shares).
Emirates Telecommunications Group described the buy as being at an "attractive valuation", though it did not detail how much was spent on the latest increase. Earlier in December 2022, Abu Dhabi's Emirates Telecommunications, also known as Etisalat, said it owns 11% of Vodafone, up from 10% earlier.
In the statements announcing the transaction, the Emirates company has maintained its investment "to obtain significant exposure to a global leader, and leverage potential commercial partnership and realise future return on our investment."
Vodafone's share price underperformed the rest of the industry in 2022, even as the sector lost value as a whole, falling more than the Stoxx Europe 600 Telecommunications Price Index.
This investment from e& comes at a time of transition at Vodafone, with the company in the process of cutting costs and currently without a permanent CEO after the departure of Nick Read.
Changes Earlier this Month
Earlier this month, Vodafone announced the head of its Spanish business was also set to depart from one of a number of corporate changes. Colman Deegan, CEO of Vodafone Spain, has decided to step down from the role on March 31, 2023. This development comes after it was announced that Vodafone Spain would join the Europe cluster effective January 12, 2023.
Antenna Hungaria, a subsidiary of Hungarian telecoms and IT Group 4iG, Corvinus International Investment (acting for the Hungarian State), and Vodafone Group have announced the signing of a binding sale and purchase agreement for 100 per cent of Vodafone Hungary operations.
Vodafone Group UK is reportedly looking to sell its remaining stake of 21.05% in the Indus Towers, India, so that it can use the proceeds to fund Vi (Vodafone Idea).