Vodafone Forms Strategic Alliance With Its Biggest Shareholder; Adds Board Member

Vodafone Group Plc (NASDAQ:VOD) and its biggest shareholder, Emirates Telecommunications Group Co, formed a strategic relationship to collaborate across a broad range of growth areas across Europe, The Middle East and Africa.
The companies have decided to work on enterprise, procurement and technology areas, including exploring cross-border digital services and solutions.
Also, as per the term, Hatem Dowidar, the CEO of Emirates Telecommunication, will join Vodafone's board of directors.
Vodafone said Dowidar would join the company as a non-executive director for as long as Emirates Telecommunication maintains the current stakeholding of 14.6% stake and can nominate another non-executive director if its shareholding exceeds 20%.
The Emirates Telecommunications Group attained a 10% interest in Vodafone a year ago, gradually increasing the stake since. Dowidar stated that the stakeholding would not exceed 25%, reported Bloomberg.
Also related: Emirates Telecom Boosts Vodafone Stake Close To 15%, Seeks Board Restructuring
Yesterday, Vodafone announced the stepping down of three directors, following the completion of nine years service limit, per UK law.
In April end, Vodafone named Margherita Della Valle as the company's CEO following a rigorous internal and external search.
Price Action: Vodafone shares are trading lower by 2.23% at $11.41 premarket on the last check Thursday.