Etisalat buys Sri Lankan operator for $207m

UAE operator Etisalat has continued with its global expansion plans by announcing that it has acquired Sri Lankan telecoms company Tigo Sri Lanka, in a deal worth $207 million.

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Etisalat buys Sri Lankan operator for $207m Etisalat is focused on expansion.
By  ITP.net Staff Writer Published  October 19, 2009

UAE operator Etisalat has continued with its global expansion plans by announcing that it has acquired Sri Lankan telecoms company Tigo Sri Lanka, in a deal worth $207 million.

Etisalat will gain entrance into the nascent Sri Lankan telecoms sector through the deal with Millicom International Cellular, which sold the firm.

Tigo Sri Lanka started operations two decades ago and is now Sri Lanka's second biggest mobile operator, with a market share of 21% and about 2.25 million subscribers.

The company competes with four other mobile operators, market leader Dialog Telekom, Sri Lanka Telecom, Hutchison and Bharti Airtel. Despite fierce competition, most analysts agree that there remains room for growth in Sri Lanka's mobile sector, which has a penetration rate of just 52%.

Etisalat will also be able to offer 3G services in the country, as Tigo Sri Lanka was licensed to offer 3G services in March 2009.

The deal appears to fit Etisalat's strategy of gaining a foothold in Asia. It already has investments in Pakistan, Afghanistan, Indonesia and India.

Etisalat chairman Mohammed Hassan Omran says that entering the Sri Lankan telecom market was "a logical addition" to the company's interests in Asia.

"Entering the Sri Lankan telecom market is a logical addition to our interests in the Asia continent. The acquisition promises attractive returns as the Sri Lankan Government is increasing its effort to promote foreign investment in all sectors. The acquisition is of a mature operator with a strong reputation for its good network and quality of service.

"We also plan to invest in this company to ensure that it has the dynamism to take the leading position in the market in the next few years and that it continues its effective role in the development and growth of the telecommunications sector in Sri Lanka," he adds.

2980 days ago
Hussain

we need High Speed internet to use in srilanka. So Welcome to Srilanka.

2980 days ago
shy

Well come and hope you would lanched a good fast internet connection ASAP ................All the best !

2981 days ago
mohamed rimaz

welcome etisalat.we expecting best service from you.we hope it will be.......

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