Essar arm acquires stake in Kenyan firm
Essar Communications Holdings has bought a 49 per cent stake in Kenyan company Econet Wireless International, reports Indulal PM.business Updated: Jan 11, 2008 20:52 IST
Essar group's telecom subsidiary Essar Communications Holdings has bought a 49 per cent stake in Kenyan company Econet Wireless International, which holds 70 per cent in Econet Wireless Kenya.
Essar's stake in Econet Wireless International (EWI) will not alter the shareholding structure of Econet Wireless Kenya, as the acquirer has picked up 49 per cent by subscribing to fresh equity of the company, the company said in a release.
"I am delighted that Essar and EWI have entered into this strategic tie-up, which will benefit both parties. We look forward to leveraging our deep understanding and experience of the mobile telecommunications industry and working with EWI as the company enters its next phase of network rollout in the Kenyan telecommunications market," said Don Rae, CEO, Essar Communication Holdings.
However, when contacted, the Essar spokesperson said the value of the deal could not be revealed, as there is a confidentiality clause in the agreement.
"Through this alliance, EWI is hoping to establish the successful business models which have emerged in countries such as Philippines, Pakistan, Indonesia and India across the African markets. These were built around aggressive network rollouts and competitive pricing, resulting in high mobile penetration. We're excited about our partnership," EWI executive director Zachary Wazara said in the release.