By Martin Mwita @MwitaMartin
Telkom Kenya Limited and Airtel Networks Kenya Limited have announced an agreement that will see the two companies enter into an agreement to merge their operations in KENYA.
The agreement will see them merge their respective mobile, enterprise and carrier service businesses in Kenya to operate under a joint venture company to be named Airtel-Telkom.
The merger announcement brings to an end market speculation which peaked last month when the two renewed talks of a possible merger after a previous fall-out.
This deal will however leave out Telkom Kenya Limited’s real estate portfolio and specific government services.
While Telkom Kenya has the option of holding up to 49 per cent of that shareholding, the final shareholding will be determined at the closing of the transaction.
The merged firm will be chaired by Telkom Kenya Limited CEO Mugo Kibati while Airtel Networks Kenya Chief Executive Prasanta Sarma will be appointed Chief Executive Officer.
Airtel Networks Kenya Limited (Airtel Kenya) and Telkom Kenya Limited (Telkom Kenya) will see no immediate changes to their operations which will continue as usual, said the two telco’s in a joint statement on Friday.
“Similarly, there will also be no change to the current respective leadership and management, legal, organisational and staffing structures. Additionally, both brands: Airtel and Telkom, as well as their respective products and solutions, will continue to co-exist. Similarly, service delivery to the respective companies’ customers as well as engagement with all business partners of both companies will continue to operate as usual,” the telco’s said.