DUBAI (Zawya Dow Jones) - Abu Dhabi-based Emirates Telecommunications Corp. (ETISALAT.AD), or Etisalat, said Saturday it acquired a 100% stake in Tigo Sri Lanka, a wholly-owned unit of Luxembourg-based Millicom International Cellular S.A. (MICC), for $207 million as it continues its expansion into new markets.
"This new acquisition is a clear example of Etisalat's international investments strategy of seizing dis
tinctive growth opportunities and maximizing value to shareholders," Etisalat Chairman Mohammed Hassan Omran said in an emailed statement.Omran said Etisalat plans to invest in Tigo Sri Lanka to ensure that it has the "dynamism" to take the leading position in Sri Lanka's telecom market in the next few years.
Tigo Sri Lanka, which started operations in 1989, is Sri Lanka's second-largest mobile phone operator with a 21% market share and 2.25 million subscribers.
"The acquisition promises attractive returns as the Sri Lankan Government is increasing its effort to promote foreign investment in all sectors," Omran said. "It also offers great opportunities for synergy with our other operations in the region, particularly in the U.A.E., Saudi Arabia and India."
Etisalat last week said it is close to finalizing a bond program aimed at financing foreign acquisitions and expanding into new markets.
The bond program - under which the company will be able to sell conventional bonds and Islamic bonds, or sukuk - is in line with "foreign expansion and acquisition activities Etisalat is carrying out in regional and global markets," it said, without specifying which markets it plans to expand into.
Etisalat expects its subscriber base to expand in 2010, from a current 85 million subscribers in Etisalat companies or affiliates across 17 markets in Asia and Africa.
The company already has investments in Asia, including Pakistan, Afghanistan, Indonesia and India, markets "which are among the fastest growing in the telecommunications sector", it said Saturday.
Etisalat shares closed up 1.2% at AED12.60 on the Abu Dhabi Exchange Thursday.
By Stefania Bianchi, Dow Jones Newswires; +971 4 3644967; stefania.bianchi@dowjones.com
Copyright (c) 2009 Dow Jones & Co.
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