Vodafone said that e& currently owns 3.94 billion voting rights in the company
U.K.-based Vodafone Group said Emirates Investment Authority, which operates under the e& brand, has raised its shareholding in the company and now owns 15.01% of its voting rights.
In a filing, Vodafone said that Emirates Investment Authority currently owns 3.94 billion voting rights in the company. It previously owned 14.006%.
The rights are worth 3 billion pounds ($3.94 billion) based on Vodafone’s closing share price of 75.62 pence on Monday.
In May, Vodafone and e&, which is 60% owned by the UAE government, announced a strategic relationship in which the latter increased its ownership in Vodafone to 14.6% The Arab telco had initially invested £3 billion in Vodafone in 2022. Under the terms of the strategic partnership, e& can increase its stake in the U.K. carrier to just under 25%.
As part of the deal, the CEO of e& was given a seat on Vodafone’s board subject to regulatory approvals, with the Arab telco also given the opportunity to appoint an independent non-executive director if its stake in Vodafone increases above 20%.
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The U.K. government previously said that the stake in local carrier Vodafone held by e& group poses a national security risk to the country.
The Cabinet Office had warned that the stake held in Vodafone by e&, represents a security concern for the authorities due to the strategic role of Vodafone in the U.K.’s telecommunications market and given the telco’s role in contributing to the U.K.’s cybersecurity and as a supplier to government departments.
The government had ordered Vodafone to organize a national security committee with the aim of overseeing and monitoring any sensitive work it carries out which could have an impact on national security. The U.K. government highlighted that this action was necessary and proportionate with the aim of mitigating the risk to national security.
The Cabinet Office also noted the partnership would enable e& to “materially influence policy at Vodafone.” Oliver Dowden, secretary of state at the Cabinet Office, has made several orders, including requirements that the U.K. government be notified if any element of the relationship changes.