Essar dismisses EWK takeover

1 Apr 2009

Essar Communications, a major shareholder in Econet Wireless International (EWI), has dismissed reports that South African wireless group MTN is considering a takeover of subsidiary Econet Wireless Kenya (EWK). India-based Essar currently holds a 49% stake in EWI. The shareholding agreement between Essar and Econet Group reportedly gives Essar the first option to buy its partner’s 51% stake. CommsUpdate yesterday reported that MTN Group hoped to enter the Kenyan wireless market, but Essar has apparently dismissed the KES36 billion (USD450 million) offer as too low.