Airtel Merger With Telkom Collapses

Telkom will no longer be pursuing the proposed merger with Airtel, Telkom Chief Executive Mugo Kibati said on Wednesday.

In a statement to newsrooms, Kibati said that the company has opted to take another direction after being put off by red tape while seeking approvals from regulators needed to complete the deal.

“Following the announcement on February 8, 2019, of the intended merger of Telkom Kenya’s mobile, enterprise and carrier businesses with Airtel Networks Kenya Limited, the company has been pursuing the various approvals required to complete the transaction,” Kibati said in a statement.

“Considering the challenges experienced in getting all the approvals required to complete the transaction, the company has simultaneously been evaluating alternative strategic options to strengthen its position and offering, within the market, as a genuine alternative for the consumer, enabling us to entrench our current brand as Kenya’s preferred data network service provider.,” he stated.

“After carefully reviewing the available options, Telkom has opted to adopt an alternative strategic direction and will no longer be pursuing the proposed joint venture transaction with Airtel Networks Kenya Limited. Our confidence in the new direction is further bolstered by the accelerated digital transformation brought about by the recent dynamics of the COVID-19 pandemic,” he added.

Telkom has now withdrawn the Notice of Redundancy issued by the Company on July 31, 2019 meaning that the company’s employees earmarked for the sack due the merger get to keep their jobs.

 “The transformation dynamic also presents Telkom with a strategic advantage, to better position its infrastructure asset base and services, to support this digitization and, in the mid to long term, bridge the consumer digital divide; connecting the unconnected by way of cutting-edge technologies such as Loon,” stated Kibati.  

More to follow

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