(Alliance News) - Emirates Telecommunications Group Co PJSC has taken a 9.8% shareholding in the UK's Vodafone Group PLC, but it has no plans to make a takeover offer, the UAE-based firm said on Saturday.
Emirates Telecom was formerly known as Etisalat and now goes by the moniker 'e&'. It said subsidiary Atlas 2022 Holdings Ltd purchased 2.77 billion Vodafone shares, praising the quality of the business and its brand.
e& didn't say how much it paid for the Vodafone shares. However, at their closing price of 118.10 pence on Friday in London, the stake is worth GBP3.27 billion.
"The transaction is fully aligned to e&'s announced ambition to be a global player in telecom and technology and to increase its exposure to international markets," it said in its statement on Saturday.
"e& is fully supportive of Vodafone's board and existing management team and its current business strategy announced in November 2021," it added.
"It does not seek board representation and is confident about the company's ability to unlock value from its organic business activity and other potential strategic transactions. e& plans to be a long-term and supportive shareholder in Vodafone and is not seeking to exert control or influence the company's board or management team.
"Similarly, e& has no intention to make an offer for Vodafone."
By Tom Waite; thomaslwaite@alliancenews.com
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