E& Group,the United Arab Emirates' telecommunications giant formerly known as Etisalat,has poured water on recent media reports suggesting a potential acquisition of United Group,a European cable and pay-TV operator.
The speculation stemmed from a Bloomberg report claiming e& was evaluating a move for United Group,whose operations in Eastern Europe could fetch a price tag of around €8 billion.However,in an official statement to the Abu Dhabi Securities Exchange,e& explicitly denied any ongoing negotiations or agreements regarding United Group's assets.
This denial doesn't necessarily extinguish the possibility of future discussions.The e& statement acknowledged the company's continuous evaluation of relevant market opportunities to maximize shareholder value.This caveat leaves the door open for potential future engagement with United Group,especially considering the latter's owner,private equity firm BC Partners,is reportedly exploring a sale with advisors.
The possibility of an e&-United Group deal aligns with the Emirati telecom's recent expansionary endeavors.In August 2023,e& acquired a controlling stake in PPF Telecom Group's assets across Bulgaria,Hungary,Serbia,and Slovakia,marking a significant step towards a broader global presence.This €2.4 billion deal,with additional potential milestone payments,signaled e&'s ambition to diversify its geographical reach.
Analysts believe that acquiring United Group could further solidify e&'s position as a major player in the European market.United Group boasts a strong presence in Southeast Europe,with a well-established cable and broadband infrastructure,making it an attractive target for e&'s growth strategy.
However,some industry experts remain cautious.The potential price tag of €8 billion could be a significant hurdle,especially considering e&'s recent acquisition of PPF Telecom assets.Additionally,integrating United Group's operations seamlessly into e&'s existing portfolio would require careful planning and execution.
Despite the denial of ongoing talks,the e& statement leaves room for speculation.The company's focus on maximizing shareholder value and its recent expansionary moves suggest that an acquisition of United Group remains a possibility,albeit one requiring further evaluation and strategic maneuvering.Only time will tell if e& decides to formally pursue this potential deal.