UAE Pays $4.4 Billion for 9.8% of Vodafone Company has no plans to make an offer for the remaining Vodafone Company

With this stake, UAE becomes Vodafone’s largest single shareholder.

As the Middle Eastern technology company aspires to expand globally, Emirates Telecommunications Group Company PJSC purchased a 9.8% interest in Vodafone Group Plc for $4.4 billion.

According to Bloomberg calculations, the company, once known as Etisalat Group and now rebranded as e&, offered around 130 pence ($1.59) per share for the holding. This is a 10% premium over Vodafone’s Friday closing price of 117.82 pence. According to Bloomberg, the UAE-based corporation has become Vodafone’s largest shareholder, surpassing BlackRock Inc., Vanguard Group Inc., and HSBC Holdings Plc.

According to a stock exchange announcement issued on Saturday, the state-controlled UAE wants to remain a long-term stakeholder and will not make an offer for the balance of Vodafone. “We invested in Vodafone to get considerable exposure to a world leader in connectivity and digital services,” the company stated, adding that it hopes to build commercial collaborations.

Vodafone’s stock has gained about 5% this year, although it remains nearly half of its 2018 high and close to the dot-com crash lows of 2002.

Activist investor Cevian Capital AB is pressuring the corporation to streamline its operations and pursue mergers to boost profits. Vodafone is looking for consolidation and scale deals in the United Kingdom, Spain, Italy, and Portugal.