In Summary
  • Successful talks will see the two firms seek regulatory approvals from the Competition Authority of Kenya (CAK).
  • Under the deal, the firms said in a statement, Telkom Kenya’s real estate portfolio and specific government services will not form part of the combined entity.
  • A successful deal could therefore hand them a combined share of 33.3 percent against market leader’s Safaricom’s 64.2 percent.

Airtel Kenya and Telkom Kenya on Friday said they had signed a binding agreement to merge their mobile, enterprise, and carrier services to form a single joint venture company to be named Airtel-Telkom.

Successful talks will see the two firms seek regulatory approvals from the Competition Authority of Kenya (CAK).

Under the deal, the firms said in a statement, Telkom Kenya’s real estate portfolio and specific government services will not form part of the combined entity.

“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,” they said.

The merged company will be chaired by Telkom Kenya chief executive Mugo Kibati while Airtel Kenya chief executive Prasanta Sarma, will be appointed chief executive officer, they added.

Latest data from Communications Authority of Kenya (CA) covering three months to September showed, Airtel the Kenyan subsidiary of Indian telecom giant Bharti Airtel, had a market share of 22.3 per cent while Telkom had nine per cent.

Telkom Kenya is majority owned (60 per cent) by the UK-based private equity firm Helios Investment Partners. The Kenyan government owns 40 per cent.

33pc market share

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