Telkom Kenya to go under the hammer

Mergers, Acquisitions and Financial Results

France Telecom has put Telkom Kenya on sale, becoming the second mobile phone operator to exit the market this year.
yuMobile is also up for sale.

The French conglomerate that owns majority of shares in Telkom, has formally informed the government that they are currently in the middle of negotiations with potential buyers to take control of what was once one of the largest employers in Kenya.

This is seven years after the firm, which operates under the Orange brand, was sold to the French.

Depending on how the negotiations between France Telecom and the new buyer progress- the French investors could be out of the company by June 2014.

France Telecom owns 70 per cent of shares in the company. The government is the other shareholder with a 30 per cent stake.

Well-placed sources exclusively told the Nation that the French had informed the government that they intended to enter into a transition agreement with the new buyers to ensure that the change in ownership was smooth and to maintain the quality of service to subscribers.