Boss of Vodafone’s top shareholder given seat on the board
The boss of Vodafone’s largest shareholder gets a seat on the board of directors as part of a deal to deepen ties between the two companies
The boss of Vodafone’s largest shareholder has been given a seat on the board of directors as part of a new deal to deepen ties between the two firms.
Hatem Dowidar, chief executive of United Arab Emirates telecoms group E&, which owns 14.6 percent of the FTSE 100 company, will join as a non-executive director as long as the company retains its current stake.
The VAE Group will also be able to appoint a second non-executive director to the board if it increases its stake above 20 percent.
On the board: Hatem Dowidar, chief exec of UAE telecom group E&, which owns 14.6 percent of the FTSE 100 firm, joins Vodafone as a non-executive director
Dowidar’s headquarters is part of an agreement between the companies to cooperate more closely in areas such as purchasing and services to multinationals. Vodafone shares fell 1.9 percent, or 1.76p, to 90.99p.
Vodafone chief executive Margherita Della Valle said: ‘We know E& well and I am delighted that we have strengthened our existing relationship.
“This enables us to seize opportunities in our respective markets and brings additional telecom experience to our board of directors.”
Dowidar added, “We are confident that our strategic relationship will provide opportunities for both companies to explore the fast-growing global telecom market and next-generation technologies.”
The state-controlled E& began building stakes last May as Vodafone came under increasing pressure from major investors to improve performance in its core German market and revive its declining share price.
A seat on the board will be a homecoming for Dowidar, who was previously CEO of Vodafone’s Egyptian arm.