Airtel and Telkom seek review of merger conditions

4 Feb 2020

Airtel Kenya and Telkom Kenya are seeking to appeal the conditions imposed on the proposed merger of their operations by the Competition Authority in December 2019. Business Daily reports that the pair are seeking a review of the condition that bars the merged entity from selling or transferring its existing operating and frequency spectrum licences. In addition, Airtel and Telkom are protesting the condition that restricts the merged entity from entering into any form of sale agreement within the first five years, and are also looking to be able to make staff reductions after one year post-merger, as opposed to the two-year wait set down by the Competition Authority.

TeleGeography’s GlobalComms Database states that Telkom is 60%-owned by Helios Investment Partners, with the remainder held by the government, while Bharti Airtel is the 100% shareholder of Airtel Kenya. Bharti Airtel is expected to hold the majority stake in Airtel-Telkom, while Telkom will acquire a shareholding of approximately 32% in the entity.

Kenya, Airtel Africa, Airtel Kenya, Bharti Airtel, Telkom Kenya