UAE's telecom giant Emirates Telecommunications Corp (Etisalat) will buy about 45% of Swan Telecom for up to $900 million, reports Reuters. This deal values Swan Telecom at $2 billion.
Swan Telecom, backed by a Mumbai based real estate company, Dynamix Balwas group of companies emerged as a frontrunner, in the priority list of spectrum, in Delhi and Mumbai circle, as per the seniority list prepared by the Department of Telecom.
At present Mauritius-based Delphi Investments Ltd holds 9.9% stake in Swan. This share was earlier held by Reliance Communications. A 90.1% stake in Swan Telecom is owned by Tiger Trustees Pvt. Ltd, which in turn is 99.8 per cent owned by Dynamix Balwas Ltd.
The remaining 0.2 per cent of Tiger Trustees is in the name of Parrot Consultants Pvt. Ltd and Zebra Consultants Pvt. Ltd. Etisalat is the largest telecom operator in the UAE and provides
telecommunications services in 14 countries in Africa, Asia and Africa including Pakistan, Egypt and Kingdom of Saudi Arabia.
Some of the other new licence holders such as Videocon and Unitech are also scouting for international partners, which makes them a possible entry point for the international giants.
Etisalat has been scouting for an Indian partner for more than 6 months and was earlier in talks with other players including Spice Communication and Videocon-backed Datacom. Swan is among the few operators which had recently bagged licences to offer telecom services
in the country.