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Etisalat buys stake in Swan Telecom

NEW DELHI: Emirates Telecommunications Corporation (Etisalat), largest operator in the Arab world, on Tuesday said it has signed a deal to acquire 45 per cent stake in recently-licensed Indian telecom firm Swan Telecom Private Limited (Swan Telecom) for $900 million.

Swan Telecom, controlled by Mumbai-based real estate and hospitality business group Dynamix Balwas (DB) Group, holds universal access service (UASL) licences in 13 telecom circles across India, while it is in the process of acquiring UASL licences in an additional two telecom service areas. Swan Telecom is likely to start its operations in the first quarter of the next financial year.

Commenting on the transaction, Mohammad Hassan Omran, Chairman of the UAE headquartered Etisalat, said: “Our entry in India, one of the largest and fastest growing mobile markets in the world today, marks an acceleration of our expansion strategy and brings to us an opportunity which matches the scale of our ambitions. We are truly excited by the partnership with the DB Group and the prospect of building Swan Telecom into a leading telecom operator, emulating the successes we have achieved in similar situations elsewhere.”

Etisalat operates in 16 countries across Asia, the Middle East and Africa, servicing over 6.4-crore customers.

In a joint statement, DB Group’s Chairman Vinod Goenka and its Managing Director Shahid Balwa said: “We believe that with Etisalat’s operational and commercial expertise and with our knowledge of the Indian market, Swan Telecom has the potential to become a leading force in Indian telecommunications."

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