UAE incumbent Etisalat is considering buying an Indian operator or merge it with its Indian business, a company official reportedly told the Economic Times.
Etisalat currently owns a 45% stake in Etisalat DB. Back in October, it reapplied to increase its…
UAE incumbent Etisalat is considering buying an Indian operator or merge it with its Indian business, a company official reportedly told the Economic Times.
Etisalat currently owns a 45% stake in Etisalat DB. Back in October, it reapplied to increase its stake in the local venture with DB Reality, after its proposal was rejected by the Foreign Investment Promotion Board, a government agency responsible for decisions on foreign direct investment.
Etisalat’s chairman and managing director Mohammad Omran was quoted saying that his company has recently been in talks with several Indian cellcos, including Reliance Communications. However, he added that discussions did not move beyond the initial stage due to a lack of clarity on M&A rules in the country.
Recently, Etisalat DB was also reportedly among the companies asked to pay penalties to the federal government for failing to launch their services within a year of receiving radio bandwidth amid the 2G scam scandal.
This report comes as the Etisalat/Zain deal seems to be in peril following the emergence of a new rival. Turkish conglomerate Cukurova may bid for a key minority portion of Kuwaiti telco Zain, adding a new threat to Etisalat’s US$12bn agreement to buy a 46% stake.
