Essar & Dhabi Group In A Partnership For Africa Telecom Venture
The Essar Group of India is exploring the possibilities for entering into a partnership with the UAE-based Dhabi group for a telecom venture in Africa.
Dhabi Group chairman, Sheikh Nahyan Bin Mubarak Al-Nahyan and Essar Group chief executive, Prashant Ruia, signed an agreement in Abu Dhabi on Sunday to start discussions in this regard.
The deal will involve an equity infusion into the business as growth capital and will be the basis of a partnership to create a significant presence in Africa, a joint statement issued here by the companies said. No further details on the deal have been revealed. The Standard Chartered Bank is the exclusive financial advisor to the Dhabi Group.
"Today's (Sunday) agreement seeks to tap the huge potentials of the African market and create more job opportunities," Sheikh Nahyan told the reporters after the signing ceremony. He added that the agreement will boost ties between India and the UAE. Ruia said the details of the deal will be revealed after three to four months.
The Dhabi Group expanded its portfolio in 2005 to include telecommunications services in Asia and Africa. Other business interests include real estate development, hotels, oil-related services, and manufacturing.
Essar Group offers telecommunications services, mobile telephony, telecom tower infrastructure, and outsourcing services, among others.