Essar Group in Talks to Take Stake in African Operator

India's Essar Group says that it is looking at an investment into Abu Dhabi Group's telecoms business, which would give it access to the firm's African subsidiaries. The Dhabi Group owns Warid Telecom International, which has African operations in Uganda and Republic of the Congo. Warid is expected to launch in the Ivory Coast soon.

The agreement was signed by H.E Sheikh Nahyan Bin Mubarak Al-Nahyan, Chairman of the Dhabi Group and Warid Telecom and Prashant Ruia, Chief Executive of Essar Group.

"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," according to a joint press release. The talks are exclusive for an undisclosed period.

Essar already has an African investment through its holding in Essar Telecom Kenya.

Warid Telecom also operates in Bangladesh and Pakistan, and is expected to launch in Georgia soon.

Posted to the site on 19th July 2009