Telkom Kenya has stated that it hopes to generate its first net profit in 2012, paving the way for an initial public offering (IPO) three years later. Chief executive Mickael Ghossein disclosed the information to Reuters earlier this week, admitting: ‘Right now we are not making positive results; I hope 2012 will be the first time we make positive results. In this case we could [launch an] IPO in 2015’. Kenyan regulations require companies to make a profit for three consecutive years before they are permitted to float on the market.
According to TeleGeography’s GlobalComms Database, in November 2007 France Telecom (FT — as part of an 85%/15% consortium with logistics group Alcazar), acquired a 51% stake in Telkom from the Kenyan government, with an offer of USD390 million, eclipsing the USD300 million reserve price. As part of the takeover agreement the consortium had to commit to selling an 11% stake via an IPO, while the government said it would offload 19% of its own interest. Following the long-delayed IPO the ownership structure will be: France Telecom/Alcazar (40%), public (30%) and state (30%).