UAE-based global technology group e& has entered a binding agreement to sell a portion of its majority stake in Careem Technologies back to Uber for $100 million in cash. The deal marks a strategic adjustment in the relationship between the three entities, just over a year after e& invested $400 million to become the super app’s majority shareholder.
Quick Facts
- e& divests 12.5% of its holding in Careem.
- Transaction valued at $100 million in cash.
- e& retains a 37.53% stake post-deal.
The $100 Million Transaction
Under the terms of the agreement, Emirates Telecommunications Group Company PJSC (e&) will divest 12.5% from its 50.03% holding in Careem’s super app business. Upon completion, the Emirati telco will retain a significant 37.53% stake in the company.
In a statement to the Abu Dhabi Securities Exchange (ADX), e& noted the transaction will support the company’s focus on its core businesses and back capital allocation priorities. “Our partial stake sale to Uber will allow Careem Technologies to benefit from Uber’s global technology experience and position itself for the next phase of growth,” the statement said.
Careem’s Growth Spurs Recalibration
The deal follows a period of strong performance for Careem, which has seen its gross transaction value (GTV) in core services grow nearly fivefold over the past two years. This expansion has been driven by rapid growth across its key verticals, including food delivery (Food), grocery delivery (Quik), and fintech services (Plus).
This momentum highlights the super app’s expanding market position in the UAE and the broader region, setting the stage for this latest capital structure change with Uber.
The Long Game: Future Exit Options
The agreement also establishes a clear path for the future. It includes reciprocal options between e& and Uber that can be exercised within a specific window between December 1, 2031, and January 31, 2032.
During this period, e& will hold a put option, allowing it to require Uber to purchase its remaining shares in Careem. Concurrently, Uber will have a corresponding call option, giving it the right to acquire those same shares. This structure provides both parties with a defined, long-term framework for a potential full exit.
The transaction remains subject to customary regulatory approvals and closing conditions.
About e&
Emirates Telecommunications Group Company PJSC (e&), formerly known as Etisalat, is a UAE-based global technology and investment group. With operations in multiple countries across the Middle East, Asia, and Africa, e& focuses on telecommunications and digital services, including fintech and digital entertainment.
Source: Zawya
