MTN eyes stake in Kenyas Econet: report

South African telecom major MTN Group is looking to acquire stake in mobile phone service provider Econet Wireless Kenya, in which Indian entity Essar Communications Holdings has management rights, says a media report.

"MTN, which is Africa's largest mobile phone service provider, has offered to buy Econet Wireless International's stake in local mobile phone provider Econet Wireless Kenya, which trades locally as 'yu'...," the Kenyan newspaper 'Standard' reported.

In an online report, the newspaper said that MTN could finally gain its "much-desired foothold in the Kenyan market, if a $450-million buyout offer for 'yu' sails through".

On the report, an MTN spokesperson told PTI that the company cannot comment on specific corporate activity at this stage.

"In line with its vision to be the leader in telecom in emerging markets, the MTN Group continues to pursue value- enhancing opportunities. Our intention is to diversify earnings and consolidate the Group's leadership position in emerging markets.

"We cannot comment on specific corporate activity at this stage," the spokesperson said in an e-mailed statement.

An Essar spokesperson categorically denied the report and said it is completely baseless.