Essar buys Warid's operation (Congo & Uganda)

[Majid Farid]

Essar buys Warid's operation
PTI 16 November 2009, 01:11am IST


NEW DELHI: Ruias-owned Essar group on Sunday announced acquisition of
majority stake in Dhabi Group's Warid Telecom operation in Uganda and
Congo, a move that would further strengthen Indian firms' presence in
South Africa.

The combined enterprise value of Warid Telecom Uganda and Warid
Telecom Congo is estimated to be $318 million. According to sources
close to the development, the Essar group has acquired 51% 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 on Sunday signed by Sheikh Nahyan
Mabarak Al Nahyan on behalf of the Dhabi group and Prashant Ruia,
group chief executive, Essar group, in Abu Dhabi.

The Essar Group has committed growth capital to both telecom
operations to facilitate network expansion and marketing, a joint
statement from Dhabi group and Essar group said. "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", it said.

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.

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.