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Vodafone Group PLC on Thursday said it has struck a deal with Emirates Telecommunications Group Co PJSC that reinforces the Abu Dhabi-based company, known as e&, as a ‘cornerstone shareholder’ in the London-listed telecommunications operator. ‘This is the next phase in a strategic relationship that began in May 2022, when e& made its original investment in Vodafone,’ it said. At the time, e& had bought a 9.8% stake in Vodafone, raising this to 11% in December. It currently holds a 14.6% stake. It has said it has no intention to make a takeover offer for Vodafone. Liberty Global PLC is another major shareholder in Vodafone with a 4.9% stake. The new operating agreement will see Vodafone and e& explore jointly offering cross-border digital services, mull adopting joint procurement, and work together to become ‘the partner of choice in providing access to high-quality digital infrastructure’. They also will work together on adopting new technology, such as the adoption of OpenRAN. As long as e& maintains its stake of just under 15% in Vodafone, e& Chief Executive Officer Hatem Dowidar will join the Vodafone board. If e& boosts its stake to above 20%, it can nominate a second non-executive director who is independent of e&. Vodafone CEO Margherita Della Valle said: ‘We know e& well, and I’m delighted we have strengthened our existing relationship through this strategic partnership. This closer alignment allows us to capture opportunities in our respective markets and brings additional telecoms experience to our board.’ Vodafone shares were down 0.5% at 92.25 pence each early Thursday in London. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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