In brief

5 July 2019

Mergers, Acquisitions and Financial Results

Zimbabwe’s state-owned fixed line operator TelOne has reported a 5% increase in revenues for full-year 2018 to USD125 million. EBITDA climbed from USD19 million to USD21 million over the same period, while pre-tax losses fell from USD39 million in 2017 to USD19.6 million last year, TechZim reports. The firm claimed just over 100,000 fixed broadband subscribers and around 269,000 fixed telephony customers at the end of 2018, up from 87,851 and 264,150 respectively a year earlier.

 

Indian telecoms company Bharti Airtel has revealed that it will hold the majority stake in Airtel-Telkom, the mobile operator set to be formed from the merger of Airtel Kenya and Telkom Kenya. According to Airtel Africa’s IPO prospectus, Telkom Kenya will acquire a shareholding of approximately 32% in the combined entity, noting that ‘the formula for calculating the respective shareholding percentage of Telkom Kenya on completion will take into account the relative revenues (for the past twelve months prior to the closing of the business transfer) of each business being contributed’. Telkom Kenya also has a call option – exercisable in the 24 months following completion of the business transfer – to increase its stake up to 49%.