UAE Telecommunications Group Company has agreed to invest $400 million in a deal worth 50.03% of a super app run by Careem, a Middle Eastern subsidiary of Uber Technologies (UBER.N).
The Careem founders Mudassir Sheikha and Magnus Olsson will oversee the Super App, according to the organization, once known as Etisalat Group and now known as e&.
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 efiling, &’s the transaction will be financed from its current cash balance and is subject to administrative approvals, customary closing conditions, and regulatory clearances.
According to a source from last month, negotiations with e& were advanced and a deal would be revealed soon.
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.
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 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.
The remaining shares in the super app are held by Uber and Careem co-founders Sheikha, Olsson, and Abdullah Elyas, according to a Careem spokesperson.