The Communications Authority of Kenya (CA) has indicated that it would approve the merger between Airtel and Telkom within 30 days. The merger will give rise to a new operator known as Airtel-Telkom.
CA has given individuals and firms or other parties that might be against the merger of the two entities a month to present their objections to the deal. In the event that there are no objections, the merger will most likely sail through after the 30 day period.
The two telcos entered into merger talks in February with a view to challenging the market leader in the telecommunication industry in this case Safaricom. Under the deal, they will merge their Mobile, Enterprise and Carrier Services businesses in Kenya. Telkom Kenya Limited’s real estate portfolio and specific government services will not be part of the new entity. The final shareholding will be determined at the close of the transaction. However, Telkom Kenya has the option of holding up to 49 percent of that shareholding. The merged company will be chaired by Telkom Kenya Chief Executive Officer, Mr. Mugo Kibati while Airtel Kenya Chief Executive Officer, Mr. Prasanta Sarma, will be appointed as the Chief Executive Officer.
The CA in a Kenya Gazette notice indicated that “The authority intends to grant approval or no objection to the intended merger, subject to the parties fulfilling certain conditions. The said representation and or objection must be filed on or before the expiry of thirty (30) days from the date of this notice and a copy of the same be forwarded to the Mobile Network Operators.”
Source: Hapa Kenya
