E& Agreed To Buy A 50.3% Stake In Careem Super App, IDR 5.9 Trillion

JAKARTA - Emirates Telecommunications Group Company (e&) has agreed to take a 50.3% stake in a super application managed by Careem, a subsidiary of Uber Technologies in the Middle East, in a transaction worth USD 400 million (IDR 5.9 trillion), as reported by e& quoted by Reuters, on Monday, April 10.

"The Super App will be managed by Careem founders Mudassir Sheikha and Magnus Olsson," said the company, formerly known as Etisalat Group and now called e&.

The ride-hailing business will be separated from the Careem Super App business and will be wholly owned by Uber, but will still be available within the Super app.

This deal will be funded from e&'s existing cash balances, and is subject to regulatory approvals, ordinary closing conditions, and administrative procedures, according to e&'s filing.

Reuters reported last month that talks with e& were at an advanced stage and a deal could be announced soon.

Careem began seeking outside investors last year to help finance its Super App, which offers services beyond its core ride-hailing business such as food delivery, bike rentals, digital payments, and courier services.

Etisalat was rebranded as e& in June last year as the majority-state-owned telecom company embarked on a new strategy to establish itself as a global technology and investment conglomerate.

e& said this transaction fits with its ambition to enhance consumer digital offerings and will enable the company to leverage these applications to enhance the growth of its consumer digital services.

"Uber and its founders, Sheikha, Olsson, and Abdullah Elyas, own the remaining stake in the super app," a Careem spokesperson said.