Etisalat increases Zantel stake to 65%
Etisalat continues African expansion after raising its stake in Zantel.
Etisalat is continuing its expansion in Africa after raising its stake in Tanzanian operator Zantel to 65%.
Etisalat increased its stake by 14%, for $16 million, according to a statement posted on the Abu Dhabi bourse. The move is part of a concerted effort by Etisalat to increase its revenues from outside its home market of the UAE.
The group's chief strategy officer said in March that Etisalat's target was to generate 25-30% of its revenue from international operations in three years, according to a report from Reuters.
Zantel is the fourth largest of Tanzania's six mobile operators and had some 1.4 million subscribers at the end of 2009, according to the country's telecom regulator.
The deal follows closely from Etisalat's acquisition of Atlantic Telecom, a holding company for telecom assets in Africa, in February. Etisalat increased its stake in the firm to 100% after acquiring the remaining 18% of shares for $75 million.
Some 10% of the Etisalat's revenues now come from its 18 overseas operations, including Egypt, Saudi Arabia and India.