Vodafone Group announced on Thursday that it has reached an agreement with its largest shareholder, Emirates telecoms group Etisalat (e&), to deepen their strategic relationship. As part of the agreement, e& CEO Hatem Dowidar will join Vodafone’s board.
Vodafone said that Dowidar will remain on its board for as long as e& maintains its current stake of 14.6 percent in the British company. In addition, if e&’s shareholding in Vodafone exceeds 20 percent, it will be able to nominate a second non-executive director to the board.
The move comes as Vodafone and e& seek to strengthen their partnership and collaborate on future opportunities in the telecoms sector. In a statement, Vodafone said that it believes Dowidar’s appointment to its board will enhance its strategic relationship with e& and help the two companies to work more closely together.
Vodafone CEO Nick Read said in the statement: “We welcome Hatem’s appointment to our board. His extensive experience in the telecoms industry and his deep understanding of our business will be invaluable as we continue to work with e& to explore new opportunities and drive growth in our respective markets.”
E& is a major player in the Middle East’s telecoms industry and has been a shareholder in Vodafone since 2012. The two companies have worked closely together on a number of projects in recent years, including the development of 5G networks in the Middle East and Africa.
In addition to his role at e&, Dowidar is also a board member of the GSMA, the trade association representing mobile network operators worldwide. He has previously held senior positions at several leading telecoms companies, including Nokia and Orange.
Commenting on his appointment to Vodafone’s board, Dowidar said: “I am delighted to be joining Vodafone’s board at such an exciting time for the company. I look forward to working closely with Nick and the rest of the board to help drive the company’s strategic direction and to explore new opportunities for growth and collaboration with e&.”
Vodafone’s announcement comes as the company looks to strengthen its position in the global telecoms market and accelerate its digital transformation efforts. The company recently completed the merger of its Australian operations with TPG Telecom and is also looking to expand its presence in other key markets, such as India.
The telecoms sector is undergoing a period of significant change, with the emergence of new technologies and the increasing demand for faster and more reliable connectivity. As a result, companies like Vodafone and e& are seeking to build partnerships and collaborate on new projects to stay ahead of the competition and meet the evolving needs of customers.
In recent years, Vodafone has made significant investments in its networks and digital capabilities, including the rollout of 5G networks across Europe. The company has also been working to streamline its operations and cut costs in order to improve profitability and strengthen its balance sheet.
As part of the deeper strategic relationship between the two telecoms giants, Vodafone and e& will also work together to explore new business opportunities, particularly in the fields of digital innovation and emerging technologies such as 5G, the Internet of Things (IoT), and artificial intelligence (AI).
The companies plan to collaborate on the development of new products and services, leveraging their respective strengths in technology, infrastructure, and market expertise.
Vodafone’s shares have been performing well in recent months, with the company’s market capitalization rising by more than 10 percent since the start of the year. The company’s strong financial performance and strategic partnerships with companies like e& are expected to support its growth and expansion plans in the years ahead.
