Emirates Telecom Boosts Vodafone Stake Close To 15%, Seeks Board Restructuring

Benzinga ·  Apr 25, 2023 08:58
  • Vodafone Group Plc's (NASDAQ:VOD) biggest shareholder, Emirates Telecommunications Group Co, discussed revamping its board with the British telecom group.
  • The United Arab Emirates sovereign wealth fund-backed firm began talks on April 12 about the board's non-executive directors engaging on various issues at Vodafone, Bloomberg reports.
  • Vodafone's shares consistently lost value for years, and it struggled in its attempts to streamline the business and sell assets. The stock slid to two-decade lows after ousting previous CEO Nick Read in December, and the company has yet to name a new chief.
  • Emirates Telecom, which now owns a 14.6% stake in Vodafone, said it has regulatory approval to raise its stake in Vodafone to 15%, has explored a potential investment in Vodafone's African business, Vodacom Group Ltd (OTC:VDMCY).
  • Emirates Telecom is now one of three strategic holders who control over a fifth of the telecom group, including Liberty Global Plc (NASDAQ:LBTYA), which holds almost 5% stake, and French billionaire Xavier Niel, who said he bought a 2.5% stake in September.
  • Vodafone shares lost 33% in stock value last year.
  • Price Action: VOD shares traded higher by 1.08% at $11.28 premarket on the last check Tuesday.
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