By Zahra Hankir and Haris Anwar
Board of Indian firm agrees 'in principle' to a plan to sell 26% stake to a strategic investor.
Emirates Telecommunications Corp, the UAE’s phone company known as Etisalat, is considering several opportunities in India, including buying a stake in Reliance Communications, Chairman Mohammed Omran said.
“We have not made an offer, but we are studying several opportunities in India, among them is Reliance Communications,” Omran said Monday at a conference in Amman, Jordan. “The market in India is going through a consolidation and we want to be an active player in India.”
Reliance Communications, India’s second-largest wireless carrier, said today its board has “in principle” approved a plan to sell as much as a 26 percent stake to a strategic or private equity investor.
The company would sell the shares at an “appropriate premium to the prevailing market price” and “examine and pursue other appropriate strategic combination or consolidation opportunities,” it said.
Reliance Communications said June 2 it received “various proposals” from overseas companies. Etisalat is in talks with Reliance Communications, the Financial Times reported June 3, citing unidentified people familiar with the discussions.
AT&T Inc. is in early talks about investing in the company, the Wall Street Journal reported, citing people familiar with the plans.
Etisalat shares gained 1 percent to AED10.5 at 11:41am in Dubai, while Reliance advanced 2.1 percent to 172.15 rupees.
It Would be great if U.A.E Would allow Reliance Telecom Company to go into the U.A.E market Telecom service would be gteat and much more cheaper