As part of its strategic plans to grow its businesses in Africa, Essar group has acquired 51% equity for about $160 million, in Dhabi Group’s Warid Telecom operations in Uganda and Congo, reports Times of India.
The combined 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.
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.