Abu Dhabi-based Etisalat said that it has acquired 100% stake in Tigo Sri Lanka, a wholly owned subsidiary of Millicom International Cellular, for an enterprise value of $207m.
Mohammed Hassan Omran, chairman of Etisalat, said: “This new acquisition is a clear example of Etisalat’s international investments strategy of seizing distinctive growth opportunities and maximising value to shareholders.”
Tigo Sri Lanka, which started operations in 1989, is the second-largest mobile phone operator in Sri Lanka with a market share of 21%. As at September 2009, the company had 2.25 million subscribers. In march 2009, Tigo Sri Lanka was licensed to offer third generation services in addition to the second generation services.
Etisalat said that Sri Lanka as a country and the Tigo Sri Lanka would provide opportunities for growth. Etisalat already has existing investments in Asia including Pakistan, Afghanistan, Indonesia and India.
Mr Omran added: 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.
“It also offers great opportunities for synergy with our other operations in the region, particularly in the UAE, Saudi Arabia and India. 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.
