Vodafone Group PLC (LSE:VOD) said it entered into a strategic relationship with Emirates Telecommunications, also known as e&.
E& establishes itself as a cornerstone shareholder in Vodafone as part of the agreement, building on its original investment a year ago, according to a statement.
The Emirati telecoms giant, formerly known as Etisalat, is Vodafone’s largest shareholder with a 14.6% stake.
Vodafone added that the relationship “enables collaboration” between the two, each benefitting from their respective scale and geographic footprint.
The relationship will focus on developing enterprise, procurement, technology and carrier, wholesale and roaming capabilities.
“This closer alignment allows us to capture opportunities in our respective markets and brings additional telecoms experience to our board,” said Vodafone CEO Margherita Della Valle.
E&’s chief executive, Hatem Dowidar, will join the board of Vodafone as a non-executive for as long as the group maintains its 14.6% stake.
There is an option to nominate a second non-executive director to the board if it increases its stake to above 20%.
“We are convinced that our strategic relationship will unlock opportunities for both companies to explore the swiftly expanding global telecom market and next-generation technologies,” said Dowidar.
E& also agrees not to build a stake over 24.99% in Vodafone, or dispose of any shares for the next two years.