Telkom bid deadline this week

29 Oct 2007

Strategic investors have until tomorrow (Tuesday) to enter a bid to acquire a 51% stake in Kenya’s largest wireline operator, Telkom Kenya. Seven firms have expressed an interest in bidding, including BT Group, France Telecom, Telkom South Africa and Alkazar of Kuwait, plus three operators from India: MTNL, Reliance Communications and Tata. The government has still to complete a restructuring of Telkom before the part-privatisation can go ahead, however. The state has committed to clearing Telkom’s entire KES68.8 billion (USD1 billion) debt and is also in the process of transferring its 60% stake in the country’s largest cellular operator, Safaricom, back to direct government ownership, but neither of these has been completed, Business Daily reports. The 51% stake in Telkom has been valued at around KES5.6 billion.

Kenya, Telkom Kenya