Airtel Kenya and Telkom Kenya have signed a binding agreement to merge their mobile, enterprise and carrier services businesses in the country.
The deal that is subject to regulatory approvals will see the two telcos operate under a joint venture company to be named Airtel-Telkom.
In 2014, yuMobile exited the Kenyan market after selling its network and infrastructure to Safaricom as Airtel Kenya took over the company’s subscribers.
The merger will see the telcos combining operations in Kenya and establish an entity with enhanced scale and efficiency, larger distribution network and strategic brand presence.
Even though the two firms say shareholding in the merger would be determined at later, reports indicate that Airtel Kenya would have a 50 percent stake, Helios will own a 40 percent while the government will have a 10 percent stake.
A joint statement said: “The final shareholding will be determined at the closing of the transaction. Telkom Kenya has the option of holding up to 49 per cent of that shareholding.”
The merger was welcomed by government officials with National Treasury Cabinet Secretary Henry Rotich saying the move is well aligned with the government’s agenda to optimize the value of the assets that it holds in trust, on behalf of Kenyans, while cementing the country’s position as a regional business hub and an international investment magnet.
On his part, ICT Cabinet Secretary Joe Mucheru said: “Such mergers have had positive impact on the development of the sector and service levels to consumers in other markets. Similarly, we look forward to this merger leading to the introduction of new technologies and telecommunication products which will, in turn, support the growth of other business sectors of our economy.”
19 Jul, 2019  0  Comments
More than half of Manx people risk falling foul of online scams after admitting they use the same password for several accounts, a survey has found.
Nearly all respondents said they... ...Read More
18 Jul, 2019  0  Comments
By Brittney Kleyn
A former Kenyan news presenter has pleaded guilty to trying to cover up the manslaughter of her three-year-old son north of Brisbane in 2014.
Key... ...Read More
17 Jul, 2019  0  Comments
Ransomware, cryptojacking, and business email compromise attacks all ramped up the financial losses due to cyber breaches, according to the Online Trust Alliance.
Despite the number of... ...Read More
15 Jul, 2019  0  Comments
Full story: Donald Trump claims trade war is working as China's economy slows
If you’re just tuning in, here’s our news story on the Chinese growth figures....... ...Read More
Sign up to receive our free newsletters!
We do not spam. We value your privacy!
© 2019 Just40days.com. All Rights Reserved. Developed by HariOm Technologies