UAE's e&'s stake in UK telecom giant rises

Dubai: The UAE telco-tech holding company e& now has a 16% stake in UK mobile services provider Vodafone. In recent years, e& emerged a key shareholder in Vodafone in a strategy that has seen the UAE company expand its investment reach into new markets outside of the Middle East.

e& initially spent $4 billion for a 9.8% stake in Vodafone, which was announced in May 2022. And then in January 2023, it confirmed having raised that shareholding to 12%.

However, the current 16% stake wasn't about e& buying more shares in Vodafone.

Instead, 'the updated shareholding is a result of Vodafone carrying out its share buyback programme', said e& in a statement.

This then led to Vodafone' share capital being reduced. But e&’s total number of shares remains the same at 3,944.7 million shares - but that now secures it a 16% stake.

Vodafone buyback

Vodafone has been on a share buyback program to rejig its capital base and generate better value for shareholders. Its latest buyback is also for 2 billion euros. The company has divested some of its operations in Europe while trying to get back the right growth numbers in Germany.