The UAE’s Etisalat is expected to reapply for permission to raise its stake in its Indian joint venture, Etisalat DB Telecom (formerly Swan Telecom) after an earlier application was rejected. Etisalat plans to submit its proposal to the nation’s Foreign Investment Promotion Board within four days, Shahid Balwa, vice chairman of the Indian unit, said in an email sent to Arabian Business.
The government body had earlier refused the application on “technical grounds,” Balwa added. Increasing its stake in Etisalat DB Telecom is part of a plan to expand in India, Balwa said.
The company is seeking to increase its stake from 44.73% to 50 percent plus one share. India’s DB Group will continue to hold around 45%. Genex Exim Ventures holds 5.27 percent, while Delphi Investments has 4.27 percent.
Although Etisalat did not confirm who it was trying to buy the shares from, last December, it was reported that Etisalat had offered Rs 380 crore (US$81 million) for Chennai-based Genex Exim Ventures stake in the company.
