Friday 4 August 2023

#UAE’s Emirates Telecom/e&/Etisalat Chases Global Deals Despite Vodafone Snag - Bloomberg

UAE’s Emirates Telecom/e&/Etisalat Chases Global Deals Despite Vodafone Snag - Bloomberg

Vodafone Group Plc’s biggest shareholder is pushing ahead with an ambitious global expansion strategy, undeterred by a slump in the British carrier’s share price that’s wiped out a chunk of its most high-profile investment.

Abu Dhabi-based Emirates Telecommunications Group this week said it will pay €2.15 billion ($2.4 billion) for a controlling stake in some of PPF Telecom Group’s assets in Eastern Europe. The deal marks the Gulf firm’s second large foray into Europe since May last year, when it splashed out $4.4 billion for just under 10% of Vodafone.

It’s since raised that holding to about 15% over a period that’s seen the UK firm’s shares shed more than a third of their value and languish at their lowest levels in 25 years. Executives have indicated that the firm could add to its stake.

The $60 billion firm, backed by oil-rich Abu Dhabi, has been mandated by the government to continue pursuing opportunistic deals, according to people familiar with matter, who asked not to be identified as the information isn’t public.

It counts UAE federal wealth fund, Emirates Investment Authority, as its biggest shareholder, giving the government — particularly in Abu Dhabi — sway over decision making.

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