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Essar acquires Warid's operation
By siliconindia
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New Delhi: Ruias-owned Essar group acquired majority stake in Dhabi Group's Warid Telecom operation in Uganda and Congo, a move that will help in strengthening Indian firms' presence in South Africa.
Ruia said, "This transaction with the Dhabi group augments our successful launch of telecom services in Kenya under the brand 'yu' which was a stepping stone for Essar to expand its telecom footprint to the African continent. This deal is a reflection of Essar's plans to increase its presence in the Middle East and Africa regions as it explores business opportunities."
The combined enterprise value of Warid Telecom Uganda and Warid Telecom Congo are estimated to be $318 million. According to sources close to the development, the Essar group has acquired 51 percent equity for about $160 million. Essar investment in Warid Telecom in Africa is part of its strategic plans to grow its businesses in Africa.
The agreements to this effect were signed by Sheikh Nahyan Mabarak Al Nahyan on behalf of the Dhabi group and Prashant Ruia, Group Chief Executive, Essar group, in Abu Dhabi.
A joint statement from Dhabi group and Essar group said that the Essar Group has committed growth capital to both telecom operations to facilitate network expansion and marketing. Upon completion, the Essar group will acquire a majority stake in both the assets. The partnership is also expected to bring operational efficiencies to the African operations."
Commenting on the development, Sheikh Nahayan Mabarak Al Nahayan, Chairman of Dhabi group said, "We are pleased to join hands with a group that both complements and extends our synergies to expand further into Africa. Warid has expanded its greenfield operations to become credible competitors and challengers in the market where it operates; the time is now right for the next stage of its growth and evolution", Nahayan added.