e& has signed a binding agreement to sell a 12.5% stake in Careem Technologies to Uber for US$100 million in cash.
The transaction will reduce the telecommunications group’s holding in the Middle Eastern superapp from 50.03% to 37.53%.
e& Group Chief Financial Officer, Karim Bennis, said:
“The transaction aligns with our strategy to focus on our core businesses while maintaining exposure to Careem Technologies’ growth trajectory.”
Careem Technologies has expanded its market share in the UAE over the past two years.
Gross transaction value across its core services has grown nearly fivefold, driven by growth in Careem Pay, food delivery, and quick commerce.
The company stated that the partial stake sale will allow Careem to benefit from Uber’s global technology experience. It will also create platform synergies.
The deal also includes reciprocal options for the remaining shares.
Under the agreement, e& holds a put option allowing it to require Uber to purchase its remaining shares in Careem Technologies.
Conversely, Uber holds a call option that enables it to require the telecom operator to sell those shares.
These options can be exercised between 1 December 2031 and 31 January 2032.
The transaction remains subject to regulatory approvals and customary closing conditions.
Upon completion, e& will account for its remaining stake in Careem Technologies using the equity method under international accounting standards.
Featured image credit: Edited by Fintech News UAE, based on image by Karim Bennis via LinkedIn
