Orascom open to telecom stake buys

Seeks clarity on foreign direct investment regulations.

Egyptian telecom giant Orascom, whose indirect stake in Hutchison Essar has raised security concerns in the country because of its large operations in Pakistan, today said it was open to buying into Indian service operators.

"We don't mind that (buying into Indian firms), provided there is a clarity on FDI (foreign direct investment) and security issues," Orascom CEO Naguib Sawires said on the sidelines of a conference organised by the Federation of Indian Chambers of Commerce & Industry.

The Ruias (of Essar) as well as the government had raised concerns over Orascom's acquisition of 19 per cent stake in Hutchison Telecommunications International, which owns 52 per cent in Hutchison Essar. Subsequently, Orascom announced that it would scale down the sake to 12 per cent.

Stressing that it was dangerous to mix foreign investment with security concerns, especially when India was trying to attract large FDI, Sawires said, "It gives mixed signals to investors." He was part of a delegation accompanying Egyptian Foreign Minister Ahmed Aboul Geit to India.

When asked if Orascom would buy Hutchison Telecom's stake in Hutchison Essar, Sawires said, "We are happy with the stake we have in the company."

But in a clear attempt to build bridges with the Ruias, he said, "They should have been consulted on the transaction."

The Ruias had expressed unhappiness at bringing in Orascom as a partner in Hutchison Telecommunications without consulting them.

Geit reiterated Sawires' views and said he would take up the security concerns in his meeting with Foreign Minister Pranab Mukherji. "We are hopeful. There should not be any obstacle for Egyptian companies coming to India," he said.

The Orascom chief has also sought an appointment with Telecommunications Minister Dayanidhi Maran.