Dubai-based private equity firm Alcazar Capital has reportedly sold its 21.5% stake in Orange East Africa (OrEA) to French partner Orange Group for well below the USD57 million asking price. Gerald Ries, senior vice president for International Operations at Orange Group, told members of the French parliament that Alcazar had opted to exit the consortium due to Telkom’s poor performance and was happy to cut its losses. Ries admitted: ‘We paid them very little … I can’t disclose the figure but it was very small’.
TeleGeography notes that the deal follows Orange Group’s move to raise its stake in the carrier from 51% to 70% in June 2013, after fellow shareholder the Kenyan government was unable to match the French group’s cash injection. As a result of both transactions Orange now owns 70% of Telkom Kenya outright.