Bharti Airtel Ltd.’s Kenya unit (Airtel Kenya) and Telkom Kenya Limited (Telkom Kenya) have agreed to merge combining their respective mobile, enterprise and carrier services businesses in Kenya to operate as Airtel-Telkom.
If approved this will create the second-largest telecommunications operator in East African after Safaricom Plc.
The merged company will be chaired by Telkom Kenya Limited CEO, Mr. Mugo Kibati while Airtel Networks Kenya Chief Executive, Mr. Prasanta Sarma, will be appointed Chief Executive Officer.
The finalisation and closure of the transaction is subject to approval by the relevant authorities.
As per the agreement, both the partners will combine their operations in Kenya and establish an entity with enhanced scale and efficiency, larger distribution network and strategic brand presence, thereby enhancing the range and quality of products and service offerings in the market, and greater choice and convenience to the consumer.
Telkom, is 60% owned by Helios Investment Partners LLP, but, “The final shareholding will be determined at the closing of the transaction. Telkom Kenya has the option of holding up to 49% of that shareholding,” they said.
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Currently, the merger will see no immediate changes to their operations which will continue as usual. Similarly, there will also be no change to the current respective leadership and management, legal, organisational and staffing structures.