Essar Communications Holdings Limited (ECHL), a subsidiary of India’s Essar Global has acquired a 49 percent stake in Kenyan telecom firm Econet Wireless International (EWI) for an undisclosed amount, reports AllAfrica. EWI owns a 70 percent stake in Kenya’s Econet Wireless Kenya, and AllAfrica terms this “a new lease of life” for the telco, adding that the operator which is yet to roll out its services despite having been issued frequency and license in 2003, primarily due to court battles. The company has been on the lookout for a financer, and their request to to get Essar incorporated as a partner was turned down since this is against the country’s licensing policy. The Essar acquisition will help the operator roll out services, by investing close to half a billion dollars for the rollout according to law firm Anjarwalla and Khanna Advocates, advisors for the deal, though sources are quoted as saying that up to $1 billion has been promised. Essar owns 33 percent stake in telco Vodafone-Essar.

Cerius adds: Interestingly EWK will compete with Safaricom, in which Vodafone (NYSE: VOD) holds a 40% stake.However, there won’t be an issue of cross ownership since its Essar and not Vodafone investing in EWI.