Thursday, November 15, 2007

France Telecom to Acquire 51% of Telkom Kenya

The Kenyan State selected a consortium controlled by France Telecom as the preferred bidder for the acquisition of a 51% stake in the incumbent operator, Telkom Kenya, for a consideration of US$390 million (about EU 270 million). The consortium also includes Alcazar Capital Limited (15% stake in the consortium). The transaction is planned to close before the end of the year.

Telkom Kenya serves over 280,000 fixed line customers and will benefit from a new mobile license.

France Telecom said the investment fits with its strategy of targeted development in fast growing markets. Mobile penetration is currently lower than 30% in Kenya. The planned deployment of new submarine cables in 2009 is expected to boost Telkom Kenya potential in broadband services.


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