Vodafone’s top shareholder to take seat on board under further tie-up
Vodafone and e& will work together on areas including procurement, offering services to multinationals and IT developments.
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Your support makes all the difference.Mobile phone giant Vodafone has said its major shareholder, United Arab Emirates telecoms group e&, will take a seat on its board as part of a further tie-up between the pair.
The British company said e& chief executive Hatem Dowidar will join the Vodafone board as a non-executive director under a deal that will see the firms work together on areas including procurement, offering services to multinationals and public sector groups, and technology developments.
Abu Dhabi-listed e& has built up a stake of 14.6% in Vodafone, marking a deepening of a strategic tie-up that began in May 2022 when e& first invested in the FTSE 100 giant.
Vodafone said Mr Dowidar will stay on its board for as long as e& keeps its current 14.6% stake and the group would be able to nominate a second non-executive director if its shareholding climbed above 20%.
Vodafone’s recently appointed group chief executive Margherita Della Valle 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.”
Mr Dowidar said: “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.”
It comes as Vodafone is under mounting pressure to boost its performance, weighed on by woes in its German business.
Ms Della Valle was confirmed last month as Vodafone’s boss, having held the role on an interim basis after the firm ousted her predecessor Nick Read in December amid concerns over the company’s flagging performance.
She is leading an overhaul to turn around its fortunes.
On announcing the new strategic tie-up, Mr Dowidar said: “We have full confidence in her leadership abilities to steer the company toward growth.”