The two will merge mobile, enterprise and carrier services in Kenya to operate as Airtel-Telkom
Bharti Airtel,Indian global telecommunications company has recently announced Airtel Networks Kenya has signed an partnership with Telkom Kenya, the East African nation’s smallest telecom operator, to merge operations.
As per information,it will help Sunil Mittal-led telco to emerge stronger in the east African market and improve overall valuation in the runup to its initial public offer (IPO) in Africa, likely in May-June.
As per the reports,the deal will not involve Telkom Kenya’s extensive real estate holdings and some government contracts for unspecified services.As per official information,Telkom’s chief executive Mugo Kibati will become the chairman of the new company, while Prasanta Sarma, the chief executive of Airtel Kenya, will hold the same role in the combined entity.
UK private equity firm Helios Investment Partners owns 60 per cent in Telkom Kenya rest the government of Kenya.With over 5 million users,it’s the third-largest telco in Kenya behind market leader Safaricom with over 30 million and Airtel Kenya, with over 10 million customers.
The combined entity will have over 31 per cent customer market share, compared with Safaricom’s 60 per cent -plus. As of September, Airtel Kenya voice and mobile data traffic shares were 33.3 per cent and 21.9 per cent, respectively.
No time frame has been given for the deal, and both companies will operate as normal until the transaction is completed.