Airtel Africa Plc and Telkom Kenya Limited have decided to forego a proposed business combination in Kenya, citing inability to reach a successful closure and lengthy process.
Airtel Networks Kenya Limited (Airtel Kenya), a subsidiary of Airtel Africa Plc, and Telkom Kenya Limited (Telkom) amongst other parties, had entered into an agreement dated February 8, 2019 to combine their businesses in Kenya. The proposed business combination was meant to create an integrated telecommunications platform with mobile, enterprise, and wholesale divisions.
However, the completion of the business combination was subject to the satisfaction of various conditions precedent, including regulatory approvals.
In a regulatory filing at the Nigerian Stock Exchange (NSE), Airtel Africa stated that despite parties respective endeavours to reach a successful closure, the transaction had gone through a very lengthy process which now led the parties to reconsider their stance.
“Accordingly, Airtel Africa Plc and Telkom have decided to no longer pursue completion of the transaction,” Airtel Africa stated.
Chief Executive Officer, Airtel Africa Plc, Raghunath Mandava, said Kenya was a large and growing market and reiterated the commitment of Airtel Africa to build a growing profitable business.
“We currently serve more than 14 million Kenyan customers, a number that is growing month on month, and in the last quarter our revenue numbers were up double digit in constant currency in Kenya.
“Our strategy to focus on winning more customers, invest in a best in class voice and data network and progressively expand our mobile money business, will continue to build on these results in order to deliver against the opportunities the Kenyan market has to offer,” Mandava said.