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UAE Group Buys 9.8% Stake in Vodafone

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In stock market news today, shares in Vodafone (VOD.L) surged 4% in the early European trading session Monday, with the announcement from the United Arab Emirates-based telecoms company, Etisalat, that it had bought a 9.8% stake in the British mobile operator.

ETISALAT is one of the world’s leading telecom groups in emerging markets. The company has operations in 16 countries across the Middle East, Asia, and Africa.

It is headquartered in Abu Dhabi and employs around 19,000 people. ETISALAT was founded in 1976 and was the first telecommunications service provider in the UAE. The company has played a major role in the development of the UAE’s telecom sector and has been instrumental in making Abu Dhabi a leading global business hub.

ETISALAT is a strong supporter of the UAE’s vision for a knowledge-based economy and is committed to investing in innovative technologies that enable it to provide world-class telecom services to its customers. The company has a large portfolio of fixed and mobile products and services that meet the needs of businesses and consumers.

The company is listed on the Abu Dhabi Securities Exchange (ADX) and has a market capitalization of AED 133 billion (US$ 36 billion). ETISALAT is majority-owned by the Emirates Investment Authority (EIA), the sovereign wealth fund of the Government of Abu Dhabi.

The Emirates Telecommunications Group said it had no intention of making an offer for the whole of Vodafone

and that it had spent $4.4 billion to invest at an “attractive valuation” in order to benefit from a currency diversification. The company said it was fully behind Vodafone’s board, which has come under pressure from other investors since the firm has struggled in its mature European markets where competition and regulation have pushed prices lower.

Nick Read, Vodafone’s CEO, vowed to lead a wave of consolidation in Europe to rebuild markets and increase earnings, but he recently gave up on a plan to merge the company’s operations in the region with those of John Malone’s Liberty Global.

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In a joint statement, Emirates Telecommunication Group (Etisalat) and Vodafone said: “Etisalat confirms that it has no intention of making an offer for Vodafone. Etisalat has been a long-term and supportive shareholder in Vodafone since 2007. The two firms also said that they had “agreed to work together on a number of strategic initiatives” including 5G, the development of the internet of things (IoT), and big data analytics. Vodafone’s shares were up almost 4% in early trading today, while Etisalat’s stock rose about 5%.

Vodafone is a leading global telecommunications company with operations in over 30 countries.

Vodafone has grown significantly over the last 5 years, with revenues increasing from £41.3 billion in 2014 to £47.7 billion in 2018. This growth has been driven by a strong performance in Europe, Africa, and the Middle East. In 2018, Vodafone’s European business generated £22.4 billion in revenues, representing 47% of the company’s total revenues. Africa and the Middle East are Vodafone’s second-largest regions accounting for 30% of total revenues.

This region has seen strong growth in recent years, with revenues increasing from £9.4 billion in 2014 to £14.3 billion in 2018. Vodafone’s strong performance in these regions has offset weaker performance in other markets, such as India and Australia. In 2018, Vodafone’s India business generated £5.6 billion in revenues, representing 12% of the company’s total revenues.

This is down from £6.7 billion in 2014 when India accounted for 16% of Vodafone’s total revenues. Australia is Vodafone’s smallest region, accounting for just 2% of total revenues. However, this market has also seen declining revenues in recent years, from £1.0 billion in 2014 to £0.9 billion in 2018.

Looking ahead, Vodafone is well-positioned to continue its growth trajectory. The company has a strong presence in key markets such as Europe and Africa and is investing heavily in next-generation networks. In 2018, Vodafone announced a €2 billion investment plan to upgrade its network in Germany. This investment will enable Vodafone to offer 5G services in Germany from 2019. Vodafone is also rolling out 5G networks in other markets, such as the UK, Italy, and Spain.

The company’s focus on next-generation networks will be a key driver of growth in the coming years.

The purchase by Etisalat of a 9.8% stake in Vodafone is a clear indication of the group’s commitment to expanding its footprint in the evolution of new-age technology This move will enable Etisalat to offer its customers a wider range of services and products, as well as access to Vodafone’s extensive customer base.

In addition, the partnership will allow Etisalat to benefit from Vodafone’s extensive experience in the telecoms sector. The purchase of this stake is in line with Etisalat’s strategy of investing in growth markets and underscores its commitment to becoming a leading global telecoms player.

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