Etisalat acquires 100% of Atlantique; seeks to raise stake in India

Etisalat announced today it has bought the remaining shares of African operator Atlantique Telecom for US$75 million thereby gaining full ownership, while simultaneously stating it has applied to raise its equity in Indian subsidiary, Etisalat DB, to 50 per cent plus one share.

The UAE operator acquired a 50 per cent stake in Atlantique in 2005, along with management rights until April 2015, and has steadily increased its equity in stages. The completion of the acquisition this year was executed through the purchase of the outstanding 18 per cent of shares. The West African company operates in seven countries: Ivory Coast, Gabon, Niger, Benin, Burkino Faso, Togo and Central African Republic.

Meanwhile Etisalat also stated it filed an application in December with India’s Foreign Investment Promotion Board (FIPB) for a planned increase in equity of Etisalat DB, from its current 44.73 per cent shareholding to 50 per cent. The operator is awaiting regulatory approval from the FIPB. Etisalat originally paid US$900 million for the stake in Swan Telecom in 2008, before renaming the entity Etisalat DB in June last year.

Etisalat DB holds licences to provide telephony, Internet and broadband services in 15 telecommunications circles across India, covering a population footprint of more than 900 million. The company is headquartered in Mumbai and is yet to launch services.

The Emirati group aims to increase its income from international operations from 10 per cent currently to eventually account for roughly half of its revenues.

On January 31, Etisalat announced a group net profit of AED 8,836 million (US$2,406 million) for 2009, up 3.8 per cent from AED 8,511 million in 2008. This sum included profit on the sale of shares in Saudi subsidiary Mobily of AED 892 million after federal royalty. Net revenues grew five per cent from AED 29,360 million in 2008, to AED 30,831 million last year.

The number of mobile users in the UAE exceeded 7.74 million in 2009, an increase of six per cent the previous year. Fixed line subscribers now count 1.31 million, while its Internet customer base rose 16 per cent year-on-year to reach 1.33 million by December.