UAE's Etisalat buys 45 per cent in Swan Telecom

23 September 2008

Mumbai:  Emirates Telecommunications Corporation (Etisalat) has acquired 45 per cent stake in Indian telecom start-up Swan Telecom for around $900 million, as the UAE-based telecom company bids to expand into higher-growth markets abroad.

Etisalat, the Gulf Arab region's second largest telecom firm, said it would acquire the 45 per cent stake in privately-held Swan through purchase of newly-issued shares.

The deal, which values Swan, at $2 billion, will give Etisalat a foothold in the world's second biggest telecom market.

Gulf telecom companies are pushing hard into emerging economies to escape saturated markets at home. Mobile phone penetration in the UAE, which has a population of 4.5 million, exceeds 150 per cent.

Etisalat had, in April, announced it could spend up to $4 billion on an acquisition or a licence in India as it sought to tap into opportunities in India.

Swan Telecom, promoted by the Dynamix Balwa Group, had recently bagged start-up GSM spectrum in 13 circles, including Delhi, and plans to roll out operations soon.