The Hindu Business Line : Essar buys 49% stake in Econet Wireless

Mumbai, Jan. 12 Essar Communications Holdings Ltd (ECHL), the telecom subsidiary of Essar Global Ltd, has announced the acquisition of 49 per cent stake in South Africa-based Econet Wireless International Ltd (EWI) by subscribing to fresh capital in the company.

This alliance is expected to benefit Econet Wireless Kenya (EWK), which is 70 per cent owned by EWI, from a roll-out as well as product offering perspective. Essar will actively participate with EWI in the network roll-out of EWK.

Mr Don Rae, CEO, ECHL, said: “We look forward to leveraging our understanding of the mobile telecom industry and working with EWI, as the company enters its next phase of network rollout in the Kenyan telecommunications market.”

Essar’s stake in EWI will not alter the shareholding structure of EWK, the company said in a press release.

Leveraging tie up

“Through this alliance, EWI is hoping to establish across African markets the successful business models that have emerged in countries such as the Philippines, Pakistan, Indonesia and India.

“These were built around aggressive network roll-outs and competitive pricing, resulting in high mobile penetration,” said Mr Zachary Wazara, Executive Director, Econet Wireless Group.

Essar Global is currently focused on global expansion with projects and investments in Canada, the US, Africa, West Asia, Caribbean and South-East Asia.

Econet Wireless has operations and offices in more than nine countries in Africa, Europe and the East Asia Pacific Rim.

The Group offers products and services in the core areas of mobile and fixed telephony services.

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