Bharti Airtel, Safaricom confirm talks to acquire Yu assets

News Wireless Kenya 4 MRT 2014
Bharti Airtel, Safaricom confirm talks to acquire Yu assets
Indian communications carrier Bharti Airtel confirmed that its subsidiary Airtel Networks Kenya has sought approval from the Communications Authority of Kenya (CAK) to acquire the telecommunications licences and subscribers of Essar Telecom Kenya, which operates under the brand name Yu. Bharti said that under the proposed arrangement, over 2.7 million Yu customers would become part of Airtel Kenya's mobile network. The company did not provide further details. 

Kenya's leading mobile operator, Safaricom said it was also in talks to acquire a stake in Essar Telecom and take over Yu's network assets. Safaricom plans to buy Yu's base stations to support its efforts to improve network quality. No financial details of the proposed transaction were disclosed. 

According to the latest statistics from CAK, Yu holds a market share of 8.8 percent in the country, putting it in third place ahead of Orange Kenya. Completion of the sale of its assets may depend on an agreement with employees at the operator. The Standard reports that Yu's staff rejected an offer to move to Airtel and Safaricom and they are seeking KES 1.2 billion in severance pay. An internal communication from Yu management told employees that the company expected many of them would be absorbed by the buyers once the transactions are completed. 

Categories:

Mobile

Companies:

Bharti Airtel,  Orange Kenya,  Safaricom,  Yu,  Essar Telecom Kenya,  Airtel Kenya

Countries:

Kenya

Tags:

Wireless, M&A buyouts & divestments

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