e& to consider joint investments with Vodafone after becoming its biggest shareholder

UAE’s e&, which last week became Vodafone’s largest shareholder, has said that it will consider joint investments with the British telco.

e&, or Emirates Telecommunications Group Company (formerly Etisalat), acquired a 9.8% stake for US$4.4 billion, or around 130p per share. 

Speaking in an interview with Reuters, e& CEO Hatem Dowidar said that he is confident in Vodafone’s strategy and said that e& backs the telco’s streamlining and consolidation in Europe.

He said: “I believe that they are clear on what needs to be done and they’re trying to do it.”

For now, Dowidar said that it will remain a passive investor “at the moment” with no plans to increase its holding. However, he did say that “the channel will be open if there is an investment where us coming in as a partner makes sense for us.”

The exec also explained that e& made its US$4.4 billion purchase because it saw Vodafone as undervalued. 

Dowidar said that the state-backed e& will continue to look for future investment opportunities in the telecommunications sector. “If we find similar opportunities to Vodafone, companies that generate good dividends, that can have some synergies with us … we will look at it,” he said.