Emirates Telecommunication Grp PJSC Strategic investment in Vodafone Group plc (5260L)
16 May 2022 - 4:01PM
UK Regulatory
TIDMVOD
RNS Number : 5260L
Emirates Telecommunication Grp PJSC
16 May 2022
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM
ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE
RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION
THIS IS AN ANNOUNCEMENT FALLING UNDER RULE 2.8 OF THE CITY CODE
ON TAKEOVERS AND MERGERS (THE "UK TAKEOVER CODE")
FOR IMMEDIATE RELEASE
14 May 2022
e&
Strategic investment in Vodafone Group plc ("Vodafone")
Emirates Telecommunications Group Company PJSC ("e&")
(formerly known as Etisalat Group) announces today that, through
its wholly-owned subsidiary Atlas 2022 Holdings Limited , it has
acquired 2,766 million shares in Vodafone, representing 9.8% of
Vodafone's issued share capital (excluding treasury shares).
e& has made the investment in Vodafone to gain significant
exposure to a world leader in connectivity and digital services.
Vodafone is one of the strongest and most globally recognised
brands across the telecom industry. It is a pioneer of digital
transformation, offering some of the most advanced technology and
next-generation solutions, including IoT and B2B solutions, within
the telecom industry and for the benefit of the wider society.
Vodafone' strong reputation for being a leading digital-first
operator, underpinned with its rigorous approach to corporate
governance and well-regulated global footprint, makes it an
attractive opportunity for e& at this current time.
As a geographically diversified company with a deep
understanding of the global telecom sector, e& sees this
investment as a highly efficient use of its strong balance sheet at
a compelling and attractive valuation with strong currency
diversification benefits. It provides a clear opportunity to
realise future value through potential capital gains and dividends.
It may also lead to possible commercial partnerships in the areas
of R&D, technological applications and procurement. The
transaction is fully aligned to e&'s announced ambition to be a
global player in telecom and technology and to increase its
exposure to international markets.
e& is fully supportive of Vodafone's Board and existing
management team and its current business strategy announced in
November 2021. It does not seek Board representation and is
confident about the company's ability to unlock value from its
organic business activity and other potential strategic
transactions.
e& plans to be a long-term and supportive shareholder in
Vodafone and is not seeking to exert control or influence the
company's Board or management team. Similarly, e& has no
intention to make an offer for Vodafone. This is a statement to
which Rule 2.8 of the UK Takeover Code applies.
Hatem Dowidar, Group CEO of e&, said: "Vodafone is one of
the leading businesses at the heart of digital communications in
Europe and Africa with a compelling business offering critical
connectivity and digital services.
"Our investment represents a unique opportunity to acquire a
significant stake in one of the leading and strongest global
telecom brands, and a company that we know well. We are looking
forward to building a mutually beneficial strategic partnership
with Vodafone with the goal of driving value creation for both our
businesses, exploring opportunities in the rapidly developing
global telecoms market and supporting the adoption of
next-generation technologies.
"We see this investment as a good opportunity for e& and its
shareholders as it will allow us to enhance and develop our
international portfolio, in line with our strategic ambition."
Atlas 2022 Holdings Limited has been established solely for the
purpose of holding the shares in Vodafone.
Rule 2.8 statement
e& hereby confirms that it does not intend to make an offer
for Vodafone. This is a statement to which Rule 2.8 of the UK
Takeover Code applies. For the purposes of Rule 2.8 of the UK
Takeover Code, e&, on behalf of itself and any person acting in
concert with it, reserves the right to announce or participate in
an offer or possible offer for Vodafone and/or to take any other
action which would otherwise be restricted under Rule 2.8 of the UK
Takeover Code within six months after the date of this announcement
in the following circumstances:
(a) with the agreement of the board of directors of Vodafone;
(b) following the announcement by or on behalf of a third party
of a firm intention to make an offer for Vodafone;
(c) following the announcement by Vodafone of a proposal for a
"whitewash" (as referred to in Note 1 of the Notes on Dispensations
from Rule 9 of the UK Takeover Code) or for a reverse takeover (as
defined in the UK Takeover Code); or
(d) if there has been a material change of circumstances (as
determined by the Panel on Takeovers and Mergers).
Enquiries:
e&
Nazih El Hassanieh, Vice President Investor Relations +971 2 618 4949
Finsbury Glover Hering
Jon Hobday +971 4 4426034
Rollo Head +44 207 251 3801
Notes to Editors
Etisalat Group has changed its brand identity to e&,
effective from 23 February 2022. Its strategy aims to accelerate
growth through the creation of a resilient business model
representing the Group's main business pillars. The Telecoms
business currently continues to operate led by Etisalat UAE in
e&'s home market and by existing subsidiaries for international
operations, upholding the Group's rich telecoms heritage,
bolstering the strong telecoms network and maximising value for the
Group's various customer segments. Ramping up the digital services
for individual customers to elevate their digital-first lifestyle,
e& life brings next-generation technologies through smart
connectivity platforms in entertainment, retail and financial
technology. To enable the digital transformation of governments,
large-scale enterprises and corporates, e& enterprise focusses
on maximising value through its end-to-end solutions in
cybersecurity, cloud, Internet of Things (IoT) and Artificial
Intelligence (AI), as well as deploying mega projects. e&
capital allows the Group to focus its efforts on driving new
mergers and acquisitions while maximising shareholder value and
strengthening global presence.
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