e& CEO Hatem Dowidar ejected from Vodafone board after share sale

Vodafone has severed its governance ties with  e& after the UAE telecoms group agreed to sell its entire 16.2 per cent stake to French billionaire Xavier Niel’s investment vehicle, Vega. 

The move triggered the immediate ejection of e&’s board representative, Hatem Dowidar  . e& (formerly Etisalat) is a major global technology and investment conglomerate based in Abu Dhabi, operating across 38 countries in the Middle East, Asia, and Africa.

Vodafone confirmed that the strategic relationship agreement signed with e& three years ago has been terminated. With that agreement gone, Dowidar’s board seat vanished overnight. Vodafone’s statement made it clear: he is out, effective immediately

The governance deal was originally struck when e& became Vodafone’s largest shareholder three years ago, giving the UAE group the right to nominate a director while preserving Vodafone’s independence through formal safeguards.

Once e& decided to sell, those rights evaporated and Dowidar’s position was axedd

Vodafone also drew a sharp line between e&’s former status and Niel’s arrival. Although Niel is acquiring the same 16.2 per cent stake, Vodafone has not announced any new governance agreement or board representation for Vega.

Niel is one of Europe’s most influential telecoms investors, with holdings in Iliad and other major operators. His sudden emergence as Vodafone’s largest shareholder is likely to ignite speculation about his strategic ambitions especially given the clean, governance free nature of his entry.

The acquisition values Vodafone shares at 112.5p, a 15 per cenrt premium to the previous closing price, putting the stake at around £4.4 billion ($5.95 billion).

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