Treasury Opens Bids for Safaricom IPO in Kenya

Mergers, Acquisitions and Financial Results

The countdown to the Safaricom Initial Public Offer (IPO) began yesterday with the opening of the technical bids for consultancy services.

The bids now go to the technical committee for evaluation. Speaking during the function held at the Treasury, Investment secretary Esther Koimett said that the evaluation would take seven days after which firms that meet the requirements will have their financial reports assessed. "The technical team will carefully go through the bids, to get the institutions that will offer the consultancies during the IPO" said Mrs Koimett.

As a result, the ministry expects to sign contracts with the successful firms by mid-September, to advise and coordinate the planned share offer. A 14-day legal period will be given for unsuccessful firms to lodge appeals, if they feel unsatisfied with the process. Of the firms that had expressed interest, two, Ogilvy and Scanad PR withdrew, while two other firms were knocked out of the process for failing to meet the deadline. Mrs Koimett assured that the technical team would go ahead with their duty unless the Minister of finance advised them otherwise.

"If we are told to stop, we will. But before we receive any information from the senior politician in the Ministry who is the minister, work will continue" noted Mrs Koimett. Langata MP Raila Odinga mounted a legal challenge (see Briefs in right-hand column) but is unlikely to be successful . Finance minister Amos Kimunya has said that the IPO will proceed.

(Source: The Nation)