Etisalat to acquire stake in Reliance Communications
19 Jul 2010
UAE-based Etisalat is close to acquiring a 26 per cent stake in Reliance Communications, the second-largest mobile operator in India according to people familiar with the deal.
To clear a number of regulatory hurdles, the two groups are also said to be considering a merger of Reliance with Swan Telecom, the Indian company in which the UAE –based group has a 45 per cent stake.
With the deal, reportedly worth about $3 billion, the government-controlled Etisalat would take a big step up in the world's fastest-growing large mobile market with more than 600 million subscribers.
Etisalat's mobile subscriber base is currently 7.8 million, the UAE telecom operator said yesterday.
According to the Bombay Stock Exchange website, the market capitalisation of Reliance with subscribers in excess of 100 million stood at $8.3 billion.
According to reports citing people close to the matter the two could seal an alliance as soon as mid-August.