Essar Group likely to dilute stake in Kenya venture

Posted: Tuesday, Apr 07, 2009 at 2343 hrs IST
Updated: Tuesday, Apr 07, 2009 at 2343 hrs IST

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New Delhi: Diversified business conglomerate Essar Group is likely to dilute its stake in Econet, its telecom venture in Kenya, to finance expansion in the country.

According to sources, Essar is looking at inducting a private equity firm as a strategic partner. The proceeds of the stake sale would be used by the company to expand its networks in Kenya.

When contacted, the Essar spokesperson declined to comment on the issue.

Essar Communications Holdings Ltd (ECHL), the telecom subsidiary of the Essar Global Ltd, owns 49% of Econet Wireless International Ltd, which in turn holds 70% of Econet Wireless Kenya.

Earlier, South African telecom major MTN Group had reported to have shown interest to acquire stake in mobile phone service provider Econet Wireless Kenya, in which Indian entity Essar Communications Holdings has management rights.

However, the company had denied reports of MTN planning to buy Econet.

Econet Wireless International is a diversified telecommunications group with operations in nine countries in Africa, Europe and the East Asia Pacific, offering products and services in mobile and fixed telephony services, the internet and satellite.

—PTI

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