Orascom open to stake buy; seeks FDI clarity

Egyptian telecom giant Orascom, a key player in Pakistan which has raised security concerns among intelligence agencies after acquiring an indirect stake in Hutch-Essar, today said it is open to pick up direct stake in Indian companies.

"We don't mind to do that (picking up direct stake in Indian telecom companies), provided there is a clarity on the FDI and security issues," Naguib Sawires, CEO of Orascom, which has an indirect presence in India through Hutchison's stake in mobile service joint venture Hutch-Essar, said.

Sawires, who is in India along with Egyptian foreign minister Ahmed Aboul Gheit to discuss various issues with the government, rubbished reports of his company bidding for Hutch-Essar, the third largest mobile operator in the country.

"I am already a shareholder in HTIL and an indirect owner of Indian assets here. I am happy to be what I am," Sawires said on being asked if Orascom is bidding for Hutch-Essar.

He said all the reports were "speculation".

Sawires, however, expressed concern and surprise at his company being termed as a security threat in India and advised that "a country which is looking for $300-400 billion investment should not club security with investments".

"It is a dangerous mix. Our company is no security hazard to India. The fact is that the asset here (Hutch-Essar) is managed by Indians. When you have $10-15 billion investment in this country, by virtue of that you become a protector of this country.

"Just because we operate in Pakistan that does not mean there is any reason for concern," he said.