Essar Communications Holdings (ECHL), the telecom subsidiary of Essar Global, has acquired a 49% stake in Kenya-based Econet Wireless International (EWI) by subscribing to fresh capital of EWI for an undisclosed amount.
The strategic alliance will significantly benefit Econet Wireless Kenya (EWK), which is 70% owned by EWI, from a rollout as well as product offering perspective. Essar will actively participate with EWI in the network rollout of EWK, ECHL said in a statement.
Econet Wireless is a diversified telecommunications group with operations in more than nine countries in Africa, Europe and the East Asia Pacific Rim. The group offers products and services in the core areas of mobile and fixed telephony services, internet and satellite.
Don Rae, CEO of ECHL, said he looks forward to leveraging their understanding and experience of the mobile telecommunications industry and working with EWI as the company enters its next phase of network rollout in the Kenyan telecommunications market. “Together, we expect to bring to Kenyan consumers an entirely new experience in mobile telephony,” he said.
“Through this alliance, EWI is hoping to establish across African markets the successful business models which have emerged in countries such as Philippines, Pakistan, Indonesia and India. These were built around aggressive network rollouts and competitive pricing, resulting in high mobile penetration.
We’re excited about our partnership with Essar and the possibilities which it opens up as we look into the future,” Zachary Wazara, executive director of the Econet Wireless Group, said.
Essar’s stake in EWI will not alter the shareholding structure of EWK. Essar has wide experience in financing telecom ventures, rolling out networks and marketing of telecom services. This experience will benefit EWI’s telecom business in Kenya. Currently, Essar Global is focused on global expansion with projects in various countries, including Canada, the US, Africa, the Middle-East, the Caribbean and S-E Asia.
Source: Economic Times