Ex-Airtel Employees Oppose Airtel-Telkom Merger In Kenya

23 August 2019

Mergers, Acquisitions and Financial Results

Fifty-two ex-Airtel employees have written to the Communication Authority of Kenya (CA) to challenge the merger of Telkom Kenya and Airtel Kenya which, according to the staff-members, would decrease the chances of their pending case being concluded. The ex-employees are part of a group of over 62 staff members who were let go by the telco in January 2016.

In July 2019, the CA asked all parties that opposed the merger to make their submissions before the intended approval within a month.

Airtel inked a deal with Telkom Kenya to merge the two telecoms operators in February this year. Telkom will still keep part of its business while Airtel will join fully as a new entity, according to Business Daily Africa.

The joint venture of the two companies is expected to commence at the end of August and will be named Airtel-Telkom under the leadership of Telkom Kenya’s Chief Executive, Mugo Kibati while Airtel Kenya’s Chief Executive Prasanta Sarma will step into the role of Chief Executive Officer.

In 2018, Airtel made a massive loss of $28 001 162.60 from piling debts and accumulated losses, and the merger is expected to improve Airtel’s financial position.

The majority owner of Telkom Kenya is the private equity firm Helios Investment Partners with a 60 percent stake, while the Kenyan government holds the remaining 40 per cent share.

Source: IT News Africa