Emirates Telecommunications Group Company has agreed to take a 50.3% stake in a super app managed by Careem, Uber Technologies’ Middle East subsidiary, in a transaction valued at $400 million, e& said in a filing on Monday.
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 fully owned by Uber, but will still be available on the super app.
The deal will be financed from e&’s existing cash balance, and subject to regulatory approvals, customary closing conditions and administrative procedures, e& said in the 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 outside its core ride-hailing business such as food delivery, bike rentals, digital payments and courier services.
Etisalat rebranded to e& in June last year as the majority state-owned telco company embarked on a new strategy to position itself as a global technology and investment conglomerate.
E& said the transaction fits into its own ambitions to scale up consumer digital offerings and would allow the company to take advantage of the app to boost the growth of its consumer digital services.
Uber and Careem’s co-founders Sheikha, Olsson and Abdullah Elyas have the remaining stakes in the super app, a Careem spokesperson said.
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