Vodafone Group Plc said that the chief executive officer of Emirates Telecommunications Group Company PJSC, its biggest shareholder, will join the board as its Emirati backers gain more sway over the company’s strategy.
(Bloomberg) — Vodafone Group Plc said that the chief executive officer of Emirates Telecommunications Group Company PJSC, its biggest shareholder, will join the board as its Emirati backers gain more sway over the company’s strategy.
Hatem Dowidar, a former Vodafone executive, will join as a non-executive director for as long as the shareholder, also known as e&, holds at least 14.6% of the stock, Vodafone said Thursday.
Vodafone and e& also outlined a “strategic relationship” to work more closely together on services, procurement and technology.
The Emirates telecom group, also known as e&, bought a 10% stake in Vodafone a year ago and has gradually increased it. Dowidar told investors last week it could increase its stake to 25% to ensure it has influence, Bloomberg reported.
If e&’s stake exceeds 20% it can nominate another non-executive director, Vodafone said in the statement.
E& said it won’t exceed a 25% holding.
Vodafone separately announced Wednesday that three of its directors would step down. They were all approaching the UK’s nine-year governance limits.
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