Bid extension may delay Telkom sale

31 Oct 2007

The Kenyan government has pushed back the deadline for the submission of technical bids from firms hoping to win a 51% stake in the country’s dominant wireline operator, Telkom Kenya. Bids were due to be submitted by 30 October, but authorities are now accepting proposals until 12 November, Business Daily in Nairobi reports. Though the government says the extension will not affect the date of the proposed final handover to a strategic investor, which has been set as 29 November, local analysts say that the process is now likely to run over into December, since losing bidders must be given at least 14 days in which to lodge an appeal against the final decision. Announcement of the technically qualified bidders is now set to occur on 19 November, with the opening of financial proposals two days later. The government has been trying to avoid seeing the Telkom sale drag on into December as a general election plus the initial public offer of a stake in cellular operator Safaricom are expected in the same month.

Kenya, Telkom Kenya