Abu Dhabi – Mubasher: e&, formerly known as Etisalat Group, has entered into a strategic agreement with Vodafone Group to join forces in certain key areas of their businesses across Europe as well as the Middle East and Africa (MEA) region.
The collaboration aligns with e&’s investment in Vodafone that began in May 2022 to foster its exposure to global markets and back possible commercial partnerships, according to a press release.
In enterprise, the two parties will team up to explore offering cross-border digital services and solutions to multinational customers and public sector organisations. Services will include fixed and mobile connectivity, mobile private network (MPN), internet of things (IoT), cybersecurity, and cloud-based services.
Furthermore, e& and Vodafone will seek to adopt joint procurement and secure access to high-quality digital infrastructure in carrier, wholesale, and roaming.
They will also work together on a technology roadmap, including the evolution and adoption of OpenRAN.
Hatem Dowidar, Group CEO of e&, said: “Our investment in Vodafone is anchored by Vodafone Group's established position and worldwide reputation as a prominent industry player that provides cutting-edge connectivity and digital services. This aligns with e&'s vision of becoming a global telecom and technology player.”
“We are convinced that our strategic relationship will unlock opportunities for both companies to explore the swiftly expanding global telecom market and next-generation technologies,” Dowidar added.
Meanwhile, the Group CEO of Vodafone, Margherita Della Valle, noted “This will allow us to capture efficiency-enhancing opportunities in our respective markets and brings additional telecoms experience to our board.”
Under the terms of the deal, Dowidar will join the board of Vodafone as a non-executive director for as long as e& maintains its current shareholding of 14.60%.
In case e& increases its equity ownership to over 20% in Vodafone, the UAE group will have the authority to nominate a second non-executive director. These appointments are subject to regulatory approvals.
In the first quarter (Q1) of 2023, the ADX-listed firm generated net profits attributable to the owners amounting to AED 2.18 billion, down 10.20% from AED 2.43 billion in Q1-22.
