The boss of Vodafone’s largest shareholder has been given a seat on the board 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 per cent of the FTSE 100 firm, will join as a non-executive director for as long as the company maintains its current holding.
The UAE group will also be able to nominate a second non-executive director to the board if it raises its stake above 20 per cent.
On the board: Hatem Dowidar, chief exec of United Arab Emirates telecoms group E&, which owns 14.6 per cent of the FTSE 100 firm, will join Vodafone as a non-executive director
Dowidar’s seat forms part of an agreement between the firms to work more closely together in areas such as procurement and offering services to multinationals. Vodafone shares fell 1.9 per cent, or 1.76p, to 90.99p.
Vodafone chief executive Margherita Della Valle said: ‘We know E& well and I’m delighted we have strengthened our existing relationship.
‘This allows us to capture opportunities in our respective markets and brings additional telecoms experience to our board.’
Dowidar added: ‘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.’
State-controlled E& began building a stake last May as Vodafone comes under increasing pressure from major investors to improve performance in its core German market and revive its flagging share price.
A seat on the board will be something of a homecoming for Dowidar, who previously served as chief executive of Vodafone’s Egyptian business.
