By Joe Hoppe

 

Emirates Telecommunications Group Co. said Monday it has purchased a 9.8% stake in Vodafone Group PLC, worth around 3.26 billion pounds ($4.0 billion).

The multinational telecommunications services provider didn't disclose how much it paid for the stake, but said it had acquired around 2.77 billion shares in Vodafone, a telecoms company. As Vodafone's shares closed Friday at a price of 117.82 pence, the stake is likely worth around GBP3.26 billion.

Emirates said it sees the investment as an efficient use of its strong balance sheet at an attractive valuation, and provides an opportunity to realize future value. It also said the acquisition might lead to possible commercial partnerships in the future.

The company said it was supportive of Vodafone's existing management and doesn't seek board representation, nor does it intend to make a takeover offer. It instead plans to be a long-term, supportive shareholder.

"We see this investment as a good opportunity for [Emirates] and its shareholders as it will allow us to enhance and develop our international portfolio, in line with our strategic ambition," Chief Executive Hatem Dowidar said.

 

Write to Joe Hoppe at joseph.hoppe@wsj.com

 

(END) Dow Jones Newswires

May 16, 2022 02:35 ET (06:35 GMT)

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