Mergers, Acquisitions and Financial Results

Telkom Kenya will go into a joint venture with the firm that wins a tender to buy a stake in its subsidiary, Gilgil Telecommunications Industries (GTI). The winner will be announced in early December. The bidding will be on October 25, to allow for evaluation to begin immediately.

Last week, six bidding firms were pre-qualified for the sale. These include KPLC, Timber Treatment International, Muringa Holdings, Electronic Tech Company, Treated Timber Products and Sao Hill Industries.

The six bidders expressed interest for the pole plant, the factory complex as independent business units or a combination of both.

Telkom Kenya would not divest completely from the subsidiary, but will go for a joint venture with the winner. The objective is to ensure that the factory upgrades to the manufacture of computers, electronic equipment including television and radios, in addition to telephone handsets.

The facility should also serve as a technology transfer centre. GTI facilities will require investments in new and modern technology.

The sale is part of the ongoing restructuring approved by the Government in February this year, aimed at making the company a viable telco in the more liberalized and competitive market for eventual privatization.

In May this year, Telkom announced that it would divest from loss making subsidiaries including the Gilgil Telecommunications Institute (GTI) and the Kenya College of Communications Technology (KCCT) - which are non-core business units.

The Nation