The Essar Group, a multinational conglomerate corporation in the sectors of Steel, Energy, Power, Communications, Shipping Ports & Logistics as well as Construction, has planned to sell its telecom business in Kenya.

Unnamed sources have reported that the company has placed $300 million price tag on the Kenyan telecom business against the investment of $250 million towards acquisition and fresh investment.

The company has also decided against buying Warid group’s telecom operations in Uganda and Congo. The failure of the final deal between two companies is attributed to regulatory concerns.

Essar also wants to exit the Indian operation with british telecom company Vodafone. Vodafone has a controlling stake of 51.57 per cent in the joint venture, while the Essar group retains its 33.02 per cent.

Essar’s 33 per cent is held in two entities, Mauritius-based Essar Communications (Mauritius) Ltd (ECML) holding 22.03 per cent and Essar Telecommunications Holdings Pvt Ltd (ETHPL) holding the balance 10.97 per cent.

In 2007, Vodafone granted options to Essar, giving it the right to sell its entire stake for $5 billion or to dispose of a part of it at a fair market value arrived at by an independent entity.