Essar confirms approval of USD120m Kenya sale; deal likely to conclude in 4Q14

1 Sep 2014

Essar Telecom Kenya (ETK) has sold its ‘yu’-branded telecoms business to larger rivals Safaricom and Airtel Kenya for around USD120 million, Indian parent company Essar Capital has confirmed. Under the terms of the transaction, Safaricom will buy ETK’s network, IT and office infrastructure, while Airtel will acquire the cellco’s subscribers. As part of the transaction, close to 90% of the yu’s employees will be absorbed by the two companies. During the transition period, cellular services will be ‘uninterrupted’, Essar Capital added. The transaction was completed after Essar received the approval of the Communication Authority of Kenya (CA), although the deal still needs to be filed with the Competition Authority.

Kenya, Airtel Kenya, Essar Telecom Kenya (yu), Safaricom