In a deal estimated to be worth a few hundred crores, Etisalat-Swan has bought out Allianz Infratech. This is the first acuisition among the new companies who were given telecom licences last year.
Allianz Infratech had licences to operate in two circles – Madhya Pradesh & Bihar. Though Swan had licences to operate in 13 out of the 22 telecom circles in India, it is not present in these two circles. Swan Telecom was acquired by UAE’s Etisalat for $900 million ( 45% stake) last year. Followin this deal with Allianz Infratech, Etisalat-Swan will now be able to operate in 15 out of the 22 telecom circles, thus covering over a billion people.
However, in a communiction to Etisalat the DoT has said that it was granting a ‘no objection certificate’ for the merger subject to both companies meeting all regulatory requirements. It has also asked Etisalat-Swan to submit a fresh proposal for the merger after the deal has been approved by the High Court or tribunal. Etisalat-Swan will also get the 4.4 MHz of start up radio frequencies that is held by Allianz in both the circles.
Source: Economic Times
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