(Business Daily Africa via NewsEdge) Econet Wireless Kenya has received a new lease of life following the buy-out of the majority share holder by Indian mobile telecommunication Essar Communication, a subsidiary of Essar Global.
Essar has recently bought 49% of Econet Wireless International, which has 70% controlling shares in the third mobile operator in Kenya.
Econet which is yet to roll out its services, despite being issued with the frequency and licence, has been scouting for a suitable financier since the Communications Commission of Kenya cleared it in September .
By buying into the Econet parent company, Essar intends to inject capital for the roll out of the local third mobile network operator.
According to law firm Anjarwalla and Khanna Advocates, who advised on the deal between Essar Communications and Econet Wireless International, Essar Communication will provide close to 'half a billion dollars for the roll out. '
Essar also intends to bring in a new model which is similar to those used in places like Indonesia, Philippines, India and Pakistan, which will offer competitive pricing and aggressive network roll out' said the firm, noting that the deal would not affect the current ownership structure since shareholding would remain the same.
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