Etisalat acquires Millicom's Sri Lanka business for $207 million
19 Oct 2009
Emirates Telecommunications Corp (Etisalat) has acquired a 100 per cent stake in Tigo Sri Lanka, a wholly-owned unit of Luxembourg-based Millicom International Cellular SA.
The deal, valued at $207 million, is seen as part of the Abu Dhabi-based company's expansion into new markets.
"This new acquisition is a clear example of Etisalat's international investments strategy of seizing distinctive growth opportunities and maximising value to shareholders," Etisalat chairman Mohammed Hassan Omran said.
Tigo Sri Lanka, which started operations in 1989, is Sri Lanka's second-largest mobile phone operator with a 21 per cent market share and 2.25 million subscribers.
"The acquisition promises attractive returns as the Sri Lankan government is increasing its effort to promote foreign investment in all sectors," Omran said, adding, "It also offers great opportunities for synergy with our other operations in the region, particularly in the UAE, Saudi Arabia and India."
The company has also acquired a 16.6 per cent stake in France-based SoftAtHome initiative, which develops and markets a home operating system designed to help service providers deliver convergent applications for the digital home.
