Telkom privatisation confirmed

29 Mar 2007

The Kenyan government has confirmed earlier plans to offer a 26% stake in national fixed line operator Telkom Kenya to a strategic investor. The state hopes to find a buyer by late September, according to details released in a statement, with the deal to be signed in mid-October. It is looking for ‘a strategic equity partner who may be a qualified operator, financial investor or consortium of investors selected through a competitive tender’. Once a strategic partner has been found the government then intends to push ahead with an initial public offering (IPO) of 34% of Telkom’s stock, Reuters writes. Reports from local press earlier this week had suggested that the government would scrap its planned IPO and simply offer a majority stake to an outside investor. Prior to the sale, Telkom is expected to hand back its 60% interest in the country’s leading cellular operator, Safaricom, leaving the way open for Telkom to enter the fast-growing wireless market under its own steam.

Kenya, Safaricom, Telkom Kenya