The UAE’s telecom giant etisalat and retains a 37.53 per cent stake in Careem Technologies even after selling 12.5 per cent shares to Uber Technologies.
Emirates Telecommunications Group Company PJSC (e&) on Monday announced that it has sold a 12.5 per cent stake in Careem Technologies to Uber Technologies in a $100 million (Dh367 million) cash deal.
The UAE’s telecom giant was holding a 50.03 per cent stake in Careem prior to the stake sale. Upon completion of the transaction, e& will retain a 37.53 per cent stake in Careem Technologies.
“Our partial stake sale to Uber will allow Careem Technologies to benefit from Uber’s global technology experience and platform synergies, and position itself for the next phase of growth. This also reflects e&’s increased strategic focus on its core businesses and disciplined capital allocation priorities, while maintaining exposure to Careem Technologies and remaining aligned with its future growth trajectory,” e& said in a statement on the Abu Dhabi Securities Exchange, where it is listed.
In addition, e& has a put option that gives it the right to require Uber to purchase e&’s remaining shares in Careem Technologies, while Uber holds a reciprocal call option that gives it the right to require e& to sell those shares.
These options are exercisable between December 1, 2031 and January 31, 2032.
“We will continue to work closely with management and fellow shareholders to support and promote the Company as a high-potential growth platform with attractive long-term prospects,” e& said.
Over the last two years, Careem Technologies accelerated revenue growth and gained market share in the UAE. Careem’s gross transaction value (GTV) in core services grew almost five times as momentum surged across several segments such as Food, Quik, Plus, and Pay.
Source: Khaleej Times
