Safaricom warns that Essar deal could impact on share price

7 Mar 2014

Kenyan mobile giant Safaricom has warned shareholders that its planned acquisition of certain assets belonging to Essar Telecom Kenya (yu) could have a negative effect on its share price. A cautionary statement released by the market leader read: ‘The directors of Safaricom wish to advise its shareholders, and the public, that Safaricom has entered into discussions for the acquisition of some of the assets of Essar Telecommunications Limited. The proposed transaction may have an effect on the value of the shares of Safaricom. Accordingly, shareholders and the public are advised to exercise caution in relying on the information in the public domain in relation to the transaction when dealing with the Safaricom shares.’

As reported by TeleGeography’s CommsUpdate earlier this week, yu, Kenya’s third largest mobile phone operator by subscribers, officially confirmed media rumours that it is set to shut down and sell off its assets to its rivals. As such, the company has applied to the Communications Commission of Kenya (CCK) for approval to sell its infrastructure to Safaricom, and its customer base to Airtel Kenya.

Kenya, Airtel Kenya, Communications Authority of Kenya (CA), Essar Telecom Kenya (yu), Safaricom