Telkom Kenya and Airtel Kenya have announced that are planning to merge which will see the two companies merge their operations.
The companies will merge their Mobile, Enterprise and Carrier Services businesses in Kenya to operate under a joint venture company called Airtel-Telkom. 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 per cent 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 finalisation and closure of the transaction is subject to approval by the relevant authorities.
Airtel Networks Kenya Limited (Airtel Kenya) and Telkom Kenya Limited (Telkom Kenya) 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. Additionally, both brands: ‘Airtel’ and ‘Telkom’, as well as their respective products and solutions, will continue to co-exist. Similarly, service delivery to the respective companies’ customers as well as engagement with all business partners of both companies will continue to operate as usual.
Telkom Kenya was stablished as a telecommunications operator in April 1999, Telkom is 60 per cent owned by Helios Investment Partners, with the remaining stake held by Kenyans through the Government of Kenya. It provides telecommunications solutions to individuals, Small and Medium-sized Enterprises (SMEs), Government and large corporates in Kenya providing services such as voice, data, mobile money as well as network services.
Airtel Kenya is owned by Bharti Airtel Limited, a multinational telecommunications company with operations in 18 countries across Asia and Africa. It’s product offerings include 2G, 3G and 4G wireless services, mobile money, fixed line services, high speed home broadband, DTH, enterprise services including national & international long distance services to carriers.