According to media reports, Emirates Telecommunications Group Co. is exploring a potential investment in Vodafone Plc’s African business in order to boost its international footprint.
BMA sources have revealed that the Abu Dhabi carrier is studying the feasibility of an offer for part or all of Vodafone’s stake.
Furthermore, Etisalat is also considering combining some of its African operations with Vodacom or buying Vodacom assets in specific countries, It’s in the early stages of weighing which path to pursue, and it could also consider other forms of cooperation, BMA sources said.
It is worth noting that any tie-up would bring together the most significant Middle Eastern telecom operator with the second-biggest African carrier by market value.
Vodafone has been steadily consolidating its interests on the continent under Vodacom, which provides telecom services in countries including South Africa, Tanzania and the Democratic Republic of Congo.
Earlier this year, Etisalat became Vodafone’s largest shareholder and is keen to leverage this position as it plans an expansion of its own business in Africa.
A spokesperson for Etisalat said the group is monitoring the market for opportunities in line with its strategy to grow in part through acquisitions. However, “no such project is in progress at the moment.”
In May, Etisalat revealed that it had spent US$4.4 billion for a 9.8 per cent stake in Vodafone. It announced recently that it had increased its holding to 11 per cent.
The Middle Eastern company is the controlling shareholder of North African carrier Maroc Telecom, which has a market value of more than US$9.5 billion in Casablanca.
