Big coup in the Tlc sector. Emirates Telecommunications, the UAE telephone company, bought the 9,8% of Vodafone, a percentage equal to 2,766 billion shares, at a price equal to 4,4 billion dollars. The investment was made through the 100% subsidiary Atlas 2022, a vehicle set up specifically for this operation.
Thanks to this deal, the Arab group becomes the first single shareholder of Vodafone, ahead of BlackRock, Vanguard and HSBC.
Through a note, Emirates Communication explains that it has “invested in Vodafone for get significant exposure in the global leader in connectivity and digital services”. The Abu Dhabi group explains that it fully supports Vodafone's board and existing management team and its current business strategy announced in November 2021. It expects – it adds – to be “a long-term and supportive shareholder in Vodafone , not to seek to exercise control or influence the board or the company's management team and has no intention of making a bid for Vodafone." Words that clarify what the company's intention is: it is a financial operation, not hostile, without any aim on the management of the British group.
“We can't wait to build a strategic partnership mutually beneficial relationship with Vodafone with the aim of driving value creation for both of our businesses, exploring opportunities in the rapidly developing global telecom market and supporting the adoption of next-generation technologies,” added CEO Hatem Dowidar.
"Vodafone is one of the strongest and most globally recognized brands in the telecommunications industry. It is a pioneer of digital transformation, offering some of the most advanced technologies and next generation solutions, including IoT and B2b solutions, all within the telecommunications sector and for the benefit of society at large. Vodafone's strong reputation for being a leading first-party digital operator, supported by its rigorous approach to corporate governance and well-regulated global footprint, makes it aAn interesting opportunity for Emirates Right now".
