Essar eyeing stake in UAE telecom biz

Continuing its global expansion spree, Ruias-promoted Essar Group on Sunday  said that it has entered into exclusive discussions with the Dhabi Group of UAE to buy out a majority stake in its telecom business in Africa.

“The Dhabi and Essar Groups have agreed to enter into exclusive discussions in relation to an investment by Essar Group into the telecommunication portfolio of Dhabi Group’s African assets,” Essar said in a statement.

The Dhabi group offers telecom services in African countries under the brand name Warid Telecom. The company has recently acquired telecom licenses for two more markets — Uganda and Congo. 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. The Dhabi group has engaged Standard Chartered Bank to act as an exclusive financial advisor for the deal.