Essar group likely to dilute stake in Kenya venture

Diversified business conglomerate Essar group is likely to dilute its stake in Econet , its telecom venture in Kenya, to finance expansion in the country. According to sources, Essar is looking at inducting a private equity firm as a strategic partner. The proceeds of the stake sale would be used by the company to expand its networks in Kenya. When contacted, the Essar spokesperson declined to comment on the issue. Essar Communications Holdings (ECHL), the telecom subsidiary of the Essar Global, owns 49 per cent of Econet Wireless International, which in turn holds 70 per cent of Econet Wireless Kenya. Earlier, South African telecom major MTN Group had reported to have shown interest to acquire stake in mobile phone service provider Econet Wireless Kenya, in which Indian entity Essar Communications Holdings has management rights.
However, the company had denied reports of MTN planning to buy Econet.
Econet Wireless International is a diversified telecommunications group with operations in nine countries in Africa, Europe and the East Asia Pacific, offering products and services in mobile and fixed telephony services, the internet and satellite.