Etisalat's Allianz buy gets DoT nod

NEW DELHI: The telecom department has approved Etisalat DB’s buyout of Allianz Infratech, marking the completion of the first acquisition among companies, which were given mobile licences in 2008, an official linked to the development said.

Etisalat DB (formerly called Swan) and Allianz had entered into the deal in late 2008 before the three-year promoter lock-in rule was announced. Allianz Infratech was, therefore, the only telco allowed to sell out completely.

In May 2009, Etisalat DB had got a ‘no-objection certificate’ from the department of telecom ( DoT) for the deal, which is estimated to be worth a few hundred crores. Etisalat will also get the 4.4 MHz of start-up radio frequencies that is held by Allianz in both the circles. Both companies have also obtained the high court nod for the merger.

Earlier, ET had reported that Allianz Infratech, promoted by four individuals — aviation entrepreneur Ajay Singh, Ashish Singh, Praveen Singh and Ashish Deora, — who hold 25% each in the company, and had bagged mobile licences for Madhya Pradesh & Bihar, would sell out to mobile phone company Swan. West Asian communications major Etisalat holds a 45% stake in this Indian telecom JV while the remaining is owned by Mumbai’s DB Realty group.