RelComm eyes Zain's African business

RelComm eyes Zain's African business

The move underscores a drive by Indian telecom companies to gain a foothold in Africa, where mobile phone penetration is low and the potential for growth high.

“Reliance Communications has been looking at some emerging market assets since its deal with MTN fell through,” said one banking source with knowledge of the talks. “They are in preliminary stages of evaluating the deal,” he said on Tuesday, and was yet to appoint merchant bankers.

Another source also said the talks were underway. A spokesman for Reliance Communications declined to comment.

Zain said last month it was reviewing a possible sale of its African operations — minus Morocco and Sudan — after French media and telecoms giant Vivendi called off talks to buy a majority stake in the African business.

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