UAE’s e& ends talks with Saudi’s Mobily on stake increase

Reuters/Jumana El Heloueh

The UAE’s e&, the telecommunications company formerly known as Etisalat, has terminated talks on a possible increase in its holding in Saudi-listed Etihad Etisalat Company (Mobily).

“Following a period of engagement, a way forward to conclude the potential transaction could not be determined,” the telco said in a statement published on the Abu Dhabi stock exchange.

e& will continue to focus on supporting Mobily as its largest shareholder, the statement said, adding that it remains positive about the Saudi telco’s future.

e& holds 27.99 percent stake in Mobily.

In March 2022, e& offered to increase its stake in Mobil to 50 percent and one share, offering a price of SAR47 ($12.53) per share.

The Abu Dhabi company then said that the offer was in line with its strategic objectives to expand and improve the performance of its investment portfolio.

In November, e& reported a 20 percent year-on-year increase in net profit to AED3 billion ($810 million) in the third quarter of 2023 as revenue rose and its subscriber base reached an all-time high.

The company’s nine-month net profit rose five percent year on year to AED7.7 billion, as revenue jumped 20 percent year on year to AED40 billion.