Vodafone Group
Plc and Emirates Telecommunications Group Company PJSC have agreed to a
strategic relationship that brings the two operators closer together in certain
aspects of their business.
As part of this
strategic relationship, Vodafone and e& have entered into a
relationship agreement that establishes e& as a cornerstone shareholder of
Vodafone (the "Relationship Agreement"). This is the next phase in a
strategic relationship that began in May 2022, when e& made its original
investment in Vodafone.
The
strategic relationship also enables collaboration across a broad
range of growth areas, as e& and Vodafone can benefit from each
other's respective operational scale and complementary geographic footprint.
The key areas of commercial collaboration that Vodafone and e& will
initially pursue include:
- In Enterprise,
Vodafone and e& will explore jointly offering cross-border digital
services and solutions to multi-national customers and public sector
organisations. Services will include fixed and mobile connectivity, Mobile
Private Networks, IoT, cybersecurity and cloud-based services.
- In Procurement,
Vodafone and e& will seek to share best practice and may adopt joint
procurement.
- In Carrier, Wholesale
& Roaming, the two operators will work together to become the
partner of choice in providing access to high-quality digital
infrastructure.
- In Technology, both
teams will seek to work together on a technology roadmap, including the
evolution and adoption of OpenRAN.
Under the terms of the
Relationship Agreement, the Group Chief Executive Officer of e&, will join
the Vodafone Board as a non-executive Director (the "e&
Nominee"), for as long as e& maintains its current shareholding of
14.6%. e& will also have the ability to nominate a second non-executive
Director (the "Independent Nominee"), independent of e&, if its
shareholding exceeds 20% (subject to certain adjustments while regulatory
approvals are outstanding). These appointments are subject to receipt by e&
of the required regulatory approvals. Other key terms of the Relationship
Agreement are summarised below.
Margherita Della Valle,
Vodafone Group Chief Executive, said: "We know e& well and I'm
delighted we have strengthened our existing
relationship through this strategic partnership. This closer
alignment allows us to capture opportunities in our respective
markets and brings additional telecoms experience to our Board."
Hatem Dowidar, Chief
Executive Officer of e&, said: "Our investment in Vodafone is
anchored by Vodafone Group's established position and worldwide reputation as a
prominent industry player that provides cutting-edge connectivity and digital
services. This aligns with e&'s vision of becoming a global telecom and
technology player.
We extend a warm
welcome to Margherita Della Valle as Vodafone's newly appointed Group Chief
Executive Officer, and we have full confidence in her leadership abilities to
steer the company toward growth. We are convinced that our strategic
relationship will unlock opportunities for both companies to explore the
swiftly expanding global telecom market and next-generation technologies".
By: Nana Appiah Acquaye
