Essar sells telecom business in Kenya for $120m

Tags: News
Essar today said it has sold its telecom business in Kenya to Safaricom and Airtel for approximately $ 120 million.

Essar Capital, the fund manager of Essar Global Fund Ltd (EGFL), which through its portfolio company Essar Telecom Kenya Limited, operates the yuMobile telecom service in Kenya, today announced the signing of binding agreements with Safaricom and Airtel for sale of its telecom business in Kenya for approximately $ 120 million.

The divestment will see Safaricom take over Essar Telecom's network, IT and office infrastructure while Airtel will acquire the company’s subscribers.

Essar Capital said the transaction has received approval from the Communication Authority (CA) in Kenya and it will now be filed with the Competition Authority of Kenya (CAK) for approval. The company expects the transaction to conclude during the fourth quarter of 2014.

"We have structured the transaction such that our customers will not need to change their mobile numbers or sim cards, post this transaction," yuMobile's Chief Executive Officer Madhur Taneja said.

Taneja added that close to 90 per cent of the yuMobile's employees will be absorbed by Safaricom and Airtel.

The divestment of Essar Telecom represents Essar Global Fund's second significant portfolio exit in the last few months, following the

sale in July of its US-based outsourcing company, Aegis US, to Teleperformance for $ 610 million.

In March 2011, Essar exited from telecom business in India by selling its 33 per cent stake to Vodafone in Vodafone Essar, now Vodafone India, for $ 5.2 billion.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • India and the US have come a long way from the frostiness of the Cold War

    As far as atmospherics go, it could scarcely be bettered.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

When we the people fail our nation

Today, we turn 65 years old as a republic. A ...

Purnendu Ghosh

The relative measures of time

Clock, the time-keeper, is our central machine. This machine dictates ...

Shona Adhikari

All roads lead to Delhi, as it gears up for art fair

With the seventh edition of India Art Fair (IAF) coming ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture