Swan given the nod for Allianz Infratech acquisition

27 May 2009

Indian cellco Swan Telecom, which is 45% owned by the UAE’s Emirates Telecommunications Corporation (Etisalat), has completed the acquisition of Allianz Infratech, according to the Economic Times. It is also understood that Swan has received a no objection certificate (NOC) from the Department of Telecommunications (DoT) for the deal, subject to both companies meeting all regulatory requirements. The DoT has also requested that Swan submit a fresh proposal for the merger after the deal has been approved by the High Court or Competition Commission. No financial details of the deal have been disclosed.

Allianz Infratech holds licences to operate in two circles that Swan is not currently present in, Madhya Pradesh and Bihar; Swan holds licences for 13 of country’s calling regions and will gain access to the 4.4MHz of spectrum allocated to Allianz as part of the deal. Allianz initially bid for a pan-India licence, but was turned down on the grounds that its net worth was less than the mandated INR13.5 billion (USD284 million). It is expected that Swan will now begin the rollout of services, having inked a contract with Swedish hardware vendor Ericsson in April this year.

India, Department of Telecommunications (DoT), Etisalat DB (formerly Swan Telecom)