Viettel drops bid for Telkom Kenya stake

24 Nov 2014

Vietnamese telecoms group Viettel has pulled out of talks to acquire a 70% stake in Telkom Kenya from France’s Orange Group, Kenyan treasury secretary Henry Rotich told Business Daily. ‘Viettel have indicated that they are no longer keen on buying the stake, so we expect [Orange Group] to look for another buyer or declare what they plan to do should they fail to get another buyer,’ Mr Rotich said, adding that the government, which owns the remaining 30% of Telkom, has set up a team comprising officials from the Attorney General’s office, the treasury and ICT ministries to advise on the next steps should Orange fail to come up with a new exit plan. According to the report, Viettel is said to have dropped its bid for the controlling stake after the government refused to give in to some of its conditions, including the immediate extension of all of the telco’s licences for another 15 years. The Vietnamese firm was also reportedly seeking to acquire a further 10% stake in Telkom, a move which would have diluted the government’s shareholding from 30% to 20%.

Kenya, Orange Group, Telkom Kenya, Viettel Group