Essar Group to invest in Dubai telecom firm

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Mumbai, Jul 20: Essar Group announced that it has entered exclusive discussion with the United Arab Emirates based company, the Dhabi Group for investing in African telecommunication business.

A preliminary agreement between the Dhabi Group and Essar was signed on Sunday, Jul 19 in Abu Dhabi, between Essar group CEO Prashant Ruia and Dhabi group chairman Sheikh Nahayan Al-Nahayan.

"The transaction will involve an equity infusion into these businesses as growth capital and will be the basis of a partnership to create a significant presence in Africa,'' the company said in a joint statement after signing the deal for exclusive talks. The Standard Chartered Bank is acting as a financial advisor to the Dhabi Group.

However, sources indicated that investment size could cross 700 million dollars. Sources also said, "Exclusive talks would be held over the next three months. The Essar group is also looking at an investment which would enable it to take 51 pc stake."

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