Monday, July 20, 2009

Essar In Talks to Invest In Warid Africa Networks

UAE-based group of investors Dhabi Group and India-based Essar Group have agreed to enter into exclusive discussions in relation to an investment by Essar Group into the telecommunications portfolio of Dhabi Group's African assets.

A statement from Essar Telecom Kenya said the transaction will involve an equity infusion into these businesses as growth capital and will be the basis of a partnership to create a significant presence in Africa. Standard Chartered Bank is acting as exclusive financial advisor to the Dhabi Group.

Essar has significant interests in telecommunications services, including mobile telephony in an Indian joint venture with Vodafone, telecom tower infrastructure, telecom retail and IT/telecom enabled services.

The Dhabi group offers telecom services in African countries under the brand name Warid Telecom. The company has recently acquired telecom licences for two more markets--Uganda and Congo. Essar Telecom Kenya has recently launched Kenya's fourth mobile network under the brand Yu and is said to have recently acquired Uganda's sixth telecom licence.

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