Financial market expert Muhammad Ali Yassin said that the acquisition of the e& Etisalat group – a 50.03% stake in the Careem application – confirms that e& – Etisalat is not what we knew in the past, but has become a technology company.
In an interview with Al-Arabiya, he added that e&’s investment in the Careem app will allow it to expand into markets where it may be present, some of which are compatible with its existing markets such as Egypt and Pakistan and possibly other markets where it is not available.
Yassin said the company’s purchase of a majority stake in an existing application means that the acquiring company has accelerated its access to new markets in order to achieve positive and high cash flows from those markets.
He explained that the main commodity in these applications is customer information, creating opportunities for the possibility of selling other products to the same customer if he is interested in them.
He said that Etisalat has another application that is one of the company’s remittance businesses and that is what it is currently trying to achieve by finding new areas of growth.
In terms of voice and data, it looks like the market has entered a new stage of saturation and growth will be weak, and with the direction of these applications, the company may achieve an increase in its profitability, which may not be. this year, but it could be in the coming years through this app directly or by purchasing other existing products,” Yasin said.
He said knowing the valuation of this deal depends on future deals through similar companies that have plans to raise capital.
Today, Monday, Emirates Telecom Group announced the acquisition of a 50.03% stake in the Careem application with an investment value of $400 million.
In a statement to the Abu Dhabi financial market, the&e Group said its investment in Careem will accelerate the company’s growth and create a great regional application.
She added that Careem’s taxi business, which is wholly owned by Uber, will be separated from the Careem Super App while it remains a shareholder in the app.
The investment value of US$400 million will be financed from the existing cash balance and the transaction does not involve related parties.
