Essar eying on UAE’s telecom business

Essar eying on UAE’s telecom businessThe Essar Group is working out plans to invest in United Arab Emirates in lines with its strategy to expand its business in the region. The firm has started talks with a business consortium, the Dhabi Group, to invest in telecom business spending about $700 million.

Prashant Ruia, the CEO of Essar group and Sheikh Nahayan Al-Nahayan. The Chairman of Dhabi group signed a deal on Sunday in Abu Dhabi, setting a foundation for future co-operation.

A joint statement of company maintains, "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 is already present in Africa and providing telecom services in Uganda and Congo Braziville with over six lakh and over one lakh subscribers respectively. It has also got necessary approvals to operate in the Ivory Coast region, having a substantial potential for telecom services.

According to sources, the Essar group is also trying to buy 51% stake in the firm. It has appointed the Standard Chartered Bank as its financial advisor for the transactions.