51% of Telkom now on offer

13 Jul 2007

The Kenyan government has increased the size of the stake it is offering in national fixed line operator Telkom Kenya to 51%, Reuters reports. The move follows feedback from potential investors who have made it clear that they are seeking a majority interest. The state had previously intended to sell 26% of Telkom to a strategic investor, while offering 34% on the Nairobi stock exchange and retaining 40% itself. Under the new proposals, the new shareholder will have to commit to offloading an 11% stake via an initial public offering, thus reducing its holding to 40%. At the same time the government will sell 19% of its 49% interest to the public, leaving the state and the public with 30% shares each. A government statement says Telkom will open to technical proposals from interested investors on 30 October and financial proposals on 8 November. Telkom Kenya was incorporated in 1999 as the country’s monopoly telco, and remains the only operator to hold a nationwide fixed line licence.

Kenya, Telkom Kenya