e& sells 12.5% stake in Careem to Uber for $100 million

Dubai: Emirates Telecommunications Group Company PJSC (e&) has signed a binding agreement with Uber Technologies to sell a 12.5% stake in Careem Technologies for $100 million in cash.

The transaction represents part of e&'s existing 50.03% holding in Careem Technologies. Following completion, e& will retain a 37.53% ownership stake in the company.

The deal remains subject to regulatory approvals and customary closing conditions.

Strong growth

According to e&, Careem Technologies has accelerated revenue growth and expanded its market share in the UAE over the past two years.

Gross Transaction Value (GTV) across the company's core services increased nearly fivefold during the period, driven by growth in segments including Food, Quik, Plus and Pay.

The performance has reinforced Careem's position as a multi-service lifestyle platform operating across several verticals.

Next growth phase

e& said the partial stake sale will enable Careem Technologies to benefit from Uber's global technology expertise and platform synergies as the company pursues its next phase of growth.

The telecoms group said the transaction aligns with its strategy of focusing on core business operations and maintaining disciplined capital allocation, while continuing to participate in Careem's future growth through its remaining shareholding.

e& added that it will continue working with Careem's management team and shareholders to support the company's long-term development.

Remaining shares

As part of the agreement, e& has secured a put option allowing it to require Uber to purchase its remaining stake in Careem Technologies.

Uber has been granted a reciprocal call option, enabling it to require e& to sell its remaining shares.

Both options can be exercised between December 1, 2031, and January 31, 2032.

Accounting treatment

Upon completion of the transaction, e& said it will change the accounting treatment of its investment in Careem Technologies to the equity method under International Accounting Standard 28 (IAS 28).

The company said it will provide further updates should any material developments occur before closing.