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Vodafone Group said that the CEO of Emirates Telecommunications Group, 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 telecoms group 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.
Read: Vodafone plays it safe, picks insider as new CEO
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 on Wednesday that three of its directors would step down. They were all approaching the UK’s nine-year governance limits. — (c) 2023 Bloomberg LP
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