The Dhabi Group, parent company of Warid and Wateen, and the Essar Group have agreed to enter into exclusive discussions in relation to an investment by Essar Group into the telecommunications portfolio of Dhabi Group’s African assets, said an official statement issued by both the companies.
It is anticipated that Dhabi Group will partner with Essar involving an equity infusion into Dhabi Group’s telecom arms in Africa. Through this partnership, Dhabi Group is expecting to not only strengthen its presence but to expand operations in the region as well.
Standard Chartered Bank is acting as exclusive financial advisor to the Dhabi Group, further said the statment.
Dhabi Group has its operations in three countries in Africa including Uganda and Congo.
It merits mentioning here that Essar holds a 33% interest in Vodafone Essar, which is a joint venture with the Vodafone Group, and is one of India’s largest cellular service providers, with over 75 million subscribers.
Update: No words yet on value of investment from Essar and share ratio, however, sources familiar with the deal confirmed us that Essar will takeover controlling stakes in Warid Uganda and Warid Congo.