KENYAN GOVT TO SPEED UP TELKOM SALE, COMPLETE BY JUNE 2005

Mergers, Acquisitions and Financial Results

The Government plans to fast-track the restructuring of Telkom Kenya in preparation for the sale of its equity at the stock market. The Permanent Secretary in the Ministry of Transport and Communication, Gerishon Ikiara, disclosed that part of the shareholding of the giant state corporation will be sold to a strategic partner "of international repute." He, however, declined to say whether the targeted investor has been identified.

"Our strategy is to commercially restructure Telkom Kenya in preparation for privatisation through an Initial Public Offer (IPO) at the Nairobi Stock Exchange. The exercise will be completed by June 2005," he said.

His remarks were contained in a speech read on his behalf by a senior deputy secretary in the ministry, Salim Ndemo, during the official opening of the Kenya Private Sector Alliance sponsored forum on Information and Communications Technologies.

Ikiara said the restructuring and eventual sale of Telkom Kenya was a key plank in the Government’s national growth strategy for the telecommunications sector.It also plans to undertake sector reforms that will pave the way for entry of private sector investment.

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