Emirates Telecommunications Group, often known as Etisalat, is exploring a possible funding in Vodacom Group because it seeks to spice up its worldwide footprint, individuals accustomed to the matter mentioned.
The Abu Dhabi provider is finding out the feasibility of a suggestion for half or all of Vodafone Group’s stake in Johannesburg-listed Vodacom, the individuals mentioned, asking to not be recognized as a result of the knowledge is non-public.
Vodafone owns roughly 60% of the corporate. Shares of Vodacom jumped 7.1% as of 1.38pm on Wednesday, on monitor for the largest each day achieve since March 2020, giving it a market worth of about R248-billion. Vodafone shares pared earlier losses and have been down 0.1% in London.
Etisalat can be weighing the potential for combining a few of its personal African operations with Vodacom or shopping for Vodacom property in particular nations, the individuals mentioned. It’s within the early levels of weighing which path to pursue, and will additionally take into account different types of cooperation, in response to the individuals.
Vodafone has been steadily consolidating its African pursuits beneath Vodacom, which gives telecommunications providers in nations together with South Africa, Tanzania and the Democratic Republic of Congo. Etisalat grew to become Vodafone’s largest shareholder earlier this 12 months and is eager to leverage this place because it plots an growth of its personal enterprise in Africa, in response to the individuals.
Deliberations are ongoing and there’s no certainty they’ll result in any transactions. A spokesman for Etisalat mentioned the group is scanning the marketplace for alternatives in step with its technique to develop partially by way of acquisitions, although there’s “no such challenge in progress for the time being”.
Representatives for Vodafone and Vodacom declined to remark.
Etisalat disclosed in Could that it had spent US$4.4 billion for a 9.8% stake in Vodafone. It introduced Wednesday it had it elevated its holding to 11%. The Center Jap firm is the controlling shareholder of North African provider Maroc Telecom, which has a market worth of about $9.5 billion in Casablanca.
Telecoms corporations within the Center East have been stepping up dealmaking this 12 months. Etisalat has been working to spice up its shareholding in Saudi Arabia’s Mobily, whereas Qatar’s Ooredoo QPSC is engaged on a sale of its community towers and can be contemplating carving out its knowledge centre unit.