Kuwait's Mobile Telecommunications Co., or Zain Group, said it is looking for an acquisition in India to enter the fastest growing telecommunications market in the world.
“Whilst in 2008 Zain engaged in discussions with leading investment banks on (acquisition) opportunities in India, we were unable to conclude any transaction,” it said in an emailed statement to Dow Jones Newswires late Tuesday. “Zain will continue its evaluation of opportunities.”
The company is still considering investments in Datacom Solutions Pvt. Ltd. or Loop Telecom Pvt. Ltd., two companies it had looked at last year as well, Zain said.
The two privately owned companies hold licenses to start mobile phone services across India.
Zain said it can't provide further details on its India plans “at this stage.”
Global telecom companies are vying to enter India – which adds more than 9.0 million mobile phone users every month – to offset slowing growth in developed markets.
The country had 376.12 million mobile phone users at the end of January, the telecom regulator's data showed.
Datacom is 64% owned by consumer goods maker Videocon Ltd., with the rest being held by a family-owned venture of Mahendra Nahata, the chairman of Himachal Futuristic Communications Ltd.
While Videocon Chairman Venugopal Dhoot said he wasn't aware of any discussions with Zain, Loop officials declined to comment.
“If they do (buy a company in India), it will be only to extend their footprint,” Marise Ananian, an Egypt-based telecom analyst at EFG Hermes, said.
Zain's main strategy is to focus on the African and Middle Eastern markets, where it is facing stiff competition, Ms. Ananian said.
Zain is also exploring acquisition opportunities in Africa, the Middle East and other parts of Asia as part of its efforts to become one of the top 10 global mobile operator by 2011, the statement said, without elaborating.
Source: WSJ