According to a filing by e&, the Emirates Telecommunications Group Company (EAND.AD) has agreed to pay $400 million to acquire a 50.03 percent ownership in the super app operated by Careem, an affiliate of Uber Technologies (UBER.N) in the Middle East.
Uber will fully own the ride-hailing company, which will be split from the Careem Super App business but remain accessible through the Super app.
According to e& (previously Etisalat Group), Careem co-founders Mudassir Sheikha and Magnus Olsson would be in charge of the Super App.
According to e&’s filing, the transaction will be financed from its current cash balance and is subject to administrative approvals, customary closing conditions, and regulatory clearances.
In order to finance its Super App, which provides services outside from its primary ride-hailing business such as food delivery, bike rentals, digital payments, and courier services, Careem started looking for outside investors last year.
According to E&, the deal fits well with its own plans to expand its consumer digital products and will enable the business to use the app to accelerate the expansion of its consumer digital services.
In June of last year, Etisalat changed its name to e& as part of a new plan to establish itself as a leading global technology and investment conglomerate.
According to a Careem representative, Uber and Careem co-founders Sheikha, Olsson, and Abdullah Elyas own the remaining shares in the mega app.
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