Essar Communications acquires stake in Kenyan telecom firm

NEW DELHI: Ruias-led Essar Communications Holdings Ltd has acquired a 49 per cent stake in Kenya's Econet Wireless International Ltd for an undisclosed amount.

The alliance would significantly benefit Econet Wireless Kenya, which is 70 per cent owned by Econet Wireless, from a roll-out as well as product offerings. Essar would actively participate in the network roll-out of the Kenyan company, an Essar statement said.

The acquisition has been made Essar Communications Holdings Ltd, the telecom subsidiary of Essar Global Ltd, by subscribing to fresh capital in the company.

"We look forward to leveraging our deep understanding and experience of the mobile telecommunications industry and working with the company in the network roll-out in Kenya," Essar Communications CEO Don Rae was quoted as saying.
   
Econet Wireless owns 70 per cent in Econet Wireless Kenya with the balance held by local investors, the release said, adding Essar's stake in EWI would not alter the shareholding structure of Econet Wireless Kenya.

With Essar's experience in financing telecom ventures, rolling out networks and marketing of telecom services, the alliance would benefit Econet Wireless International's telecom business in Kenya, the release said.