Etisalat Buys Into IndiaEtisalat Buys Into India

ABU DHABI, U.A.E. -- Emirates Telecommunications Corporation (“Etisalat”) has signed a definitive agreement to acquire approximately 45% of Swan Telecom Private Limited (“Swan Telecom”, or the “Company”), a recently licensed mobile operator in India, by subscribing to newly issued shares for a cash consideration of up to US$ 900 million, implying a post-money equity value for 100% of the Company of up to US$ 2 billion

Swan Telecom holds Universal Access Service Licenses (“UASL Licenses”) in 13 telecom service areas in India, and is in the process of acquiring UASL Licenses in an additional 2 telecom service areas. Together these licenses enable the Company to provide a full spectrum of telecom services, including GSM services, covering a population of over 900 million across India.

The remaining 55% of the shares in Swan Telecom are held by several entities, including the promoter of Swan Telecom, which is controlled by the Dynamix Balwas Group (the “DB Group”), a Mumbai-based real estate and hospitality business group.

Commenting on the transaction, Mr. Mohammad Hassan Omran, Chairman of Etisalat, said: “Our entry in India, one of the largest and fastest growing mobile markets in the world today, marks an acceleration of our expansion strategy and brings to us an opportunity which matches the scale of our ambitions. We are truly excited by the partnership with the DB Group and the prospect of building Swan Telecom into a leading telecom operator, emulating the successes we have achieved in similar situations elsewhere.”

Emirates Integrated Telecommunications Co. (du)