Bharti, Tatas, RCOM officials in Kenya for 51% in Telkom

India’s leading telecom companies are on an African safari. Bharti Airtel, Reliance Communications and the Tatas are in the race to acquire a majority stake (51%) in Telkom Kenya.

Even as these companies refused to confirm the development, it is learnt that their representatives (along with other global telcos) are currently in Kenya as part of the two-day Telkom Kenya bidders’ conference which kicked off in Nairobi on Tuesday.

The India companies will have to compete with other global majors such as British Telecom and Dubai-based Vtel Holding who are also learnt to be in the race. Last year both Bharti Airtel and Reliance Communications had lost the race to acquire a mobile licence in Kenya.

Just last month, the Kenyan government had agreed to double the stake for sale in Telkom Kenya to 51% after repeated requests from potential investors. However, as per the terms specified by the Kenyan government, the successful bidder (over a period of time) would have to reduce its stake to 40% by selling 11% shares to the public.

At the same time, the government will also divest a further 19% to the public. This implies, the final shareholding pattern of Telkom Kenya would be 30% by the government, 40% by the successful bidder and 30% by the public.

Read more in The Economic Times article.

MTNL may bid for 26% in Telkom Kenya

The Kenyan government had recently invited bids for the 26% stake in the state-owned landline company, which has about 300,000 customers and an average revenue per user of about $40 per month. The successful bidder will be announced on September 25 and the dateline for signing the deal is October 17. Kenya also plans to sell additional 34% stake in Telkom Kenya through an IPO after identifying a strategic partner for the company.

MTNL, which offers both fixed line services in Mumbai and Delhi, plans to bid for 26% equity stake in Telkom Kenya. According to MTNL sources, the company was planning to bid for the 26% stake for Telkom Kenya as it had lost the bid to acquire a mobile license in the African country last year.

The IPO date will be finalised only after consultations with the successful bidder for the 26% stake. The International Finance Corporation is the transaction advisor to the Kenyan government for the deal.

Read more in The Economic Times article.