Telkom Kenya Will Retain Its Debt Post-Merger With Airtel
11 April 2019
Airtel Kenya will not be assuming responsibility for Telkom Kenya’s debt after the completion of their merger.
The two telcos announced in February that ownership of Telkom Kenya’s enterprise, carrier and mobile businesses would be transferred over to Airtel Kenya. The companies have now clarified how the Telkom’s debt will factor into the deal.
In a joint statement, the mobile operators said that Airtel would not be assuming nor did it intend to assume any of the liabilities incurred in the transfer of business by Telkom. The statement did not reveal the extent of Telkom Kenya’s debt, but a report in Business Daily claimed that the amount totalled to “billions of shillings”.
In the same statement, the mobile operators confirmed that after the conclusion of the proposed merger, the proposed transferee, Airtel, would be renamed in order to reflect the joint venture of the two parties.
Some members of the media have speculated that the statement from the two entities may have been issued as a response to concerns that were raised last month by some members of the Kenyan National Assembly who refused to approve the merger until more information is revealed about the details of the proposal.