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Emirates telecommunications company Etisalat (e&) has signed a binding agreement with South Korea-based multi-cloud solutions provider Bespin Global to form a joint venture (JV) with an initial capital of US$10 million.
The joint venture, called Bespin Global MEA, will be 65 percent owned by e& Enterprise and 35 percent by Bespin Global, the telecom company said in a filing to the Abu Dhabi Securities Exchange (ADX) on Friday. % of shares. Contributions to capital will be made on a pro rata basis.
Under the agreement, the emirates telecommunications company can further cooperate with existing Bespin Global shareholders by making an initial investment of US$60 million in Bespin Global in exchange for approximately 10% of the shares.
In addition, e& has the option to invest an additional $60 million at the same valuation within 18 months of closing. In addition, e& has committed to providing up to $40 million of additional capital to the joint venture in the form of shareholder loans to finance the growth of the business.
The investments will be paid for in cash, e& said.
Upon completion of the transaction, the joint venture will be consolidated into e&’s financial statements.
It will provide public cloud hosting and professional services in the Middle East, Turkey, Africa and Pakistan (METAP).
The move to form the joint venture is in line with the company’s “strategic objective to expand e-commerce and enterprise verticals and enhance its digital capabilities,” the statement said.
Earlier this week, Etisalat Increase Its stake in the British Vodafone Group is 11% of the British mobile phone company.
(Writing by Brinda Darasha; Editing by Cleofe Maceda)
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