Emirates Telecommunications Corporation (Etisalat) announced Tuesday that it will buy a 45 percent stake in India's Swan Telecom for $900 million.
The UAE-based Etisalat will now have an entry way to a gigantic emerging market, which is the world's second largest in terms of subscribers. Broadband penetration is limited in India, and many experts predict a rapidly growing middle class will increasingly turn to mobile products to meet their communications needs instead. Swan, now valued at more than $2 billion, will benefit from Etisalat's experienced merger team, which has already set up operations in 16 other countries; Etisalat gains a presence in a huge market, as Swan already holds 13 licenses (hard to come by in India) and is in the process of getting two more. Sounds like a win for both.
For more:
- see the business-standard.com article
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