Essar Group, controlled by brothers Shashi and Ravi Ruia, has decided against buying into Dhabi Group’s telecoms business in Uganda and Congo, the group said on Wednesday, but denied a media report that it was looking to sell its telecoms operations in Kenya.
Essar had in 2009 agreed with Dhabi Group to buy a majority stake in Warid Telecom Uganda and Warid Congo SA, which it said had an enterprise value of $318 million. Essar had not disclosed how much it was paying for the stake.
“It was mutually decided between the partners — Essar and Warid Group — not to proceed with the deal closure as certain condition precedents pertaining to government clearance were not met,” Essar said in a statement.
About its telecoms operations in Kenya, the group also said, “Essar remains committed to the African market and is satisfied with its operations in Kenya.”