DUBAI (Reuters) - Emirates Telecommunications Group (E&) announced in a disclosure to the stock exchange on Monday that it had signed a binding agreement on Sunday to acquire a 50.3 percent stake in a leading application operated by Careem, a subsidiary of Uber Technologies in the Middle East, with an investment of $400 million. The group, which was previously called the (Etisalat) group, stated that the management of the (Careem Super App) application will continue by the current administrative team, including Muddassir Sheikha and Magnus Olsson, who are among the first founders of the application.
Uber's wholly-owned subsidiary Careem's ride-hailing business will be separated from Careem SuperApp while remaining a shareholder in the app.
The disclosure stated that the investment value will be financed from the current cash balance of E&The completion of the transaction is subject to the fulfillment of regulatory approvals and a number of conditions and procedures. Reuters reported last month that talks with E&E were at an advanced stage and that an agreement could be announced soon. Careem began looking for outside investors last year to help fund its Careem Super App, which provides services outside the core of its ride-hailing business, such as food delivery, bike rentals, digital payments and courier services.
Etisalat rebranded to E& in June last year as the majority state-owned company embarked on a new strategy to position itself among the world's technology and investment giants.E& noted that the deal is in line with its ambitions to elevate its digital offering to consumers and accelerate its transformation into a technology company.A Careem spokesperson said Uber and founders Sheikha, Olson and Abdullah Elyas will own the remaining stakes in the pioneering app.