Airtel-Telkom new marriage

Telkom Kenya and Airtel have today signed an agreement to merge the two mobile companies, to operate under joint new venture named Airtel-Telkom

India’s Bharti Airtel today  announced that its unit, Airtel Networks Kenya Ltd, has agreed to merge with Telkom Kenya Ltd, which is Kenya’s smallest telecom operator.

Last month, three industry sources said that Bharti Airtel was in talks to buy Telkom Kenya, to create a stronger challenger to market leader Safaricom.

The companies will combine their respective mobile, enterprise and carrier services businesses in Kenya to operate as Airtel-Telkom, Airtel said, without revealing further details.

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

On the same Safaricom’s Bob Colloymore has  welcomed the new partnership citing lower charges for subscribers despite being a threat to Safaricom’s business.

 

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