Essar Telecom Kenya seeks strategic investor

14 Jun 2013

The CEO of Essar Telecom Kenya, Madhur Taneja, has revealed that the company is is seeking a strategic investor in a bid to avoid a deepening liquidity crisis. The Kenyan cellco, which trades under the ‘YuMobile’ brand and is 80%-owned by India’s Essar Group, has been forced to delay payments to suppliers due its funding problems. ‘To finance …expansion and enhance its operations, in November 2012 yuMobile appointed BNP Paribas, which is currently engaging with strategic investors,’ said the executive in a statement. ‘The financing plans, however, fell behind schedule due to foreign investor concern over the political environment experienced at the start of the year. A conclusion is expected by September 2013,’ he added.

Kenya, Essar Telecom Kenya (yu)