France Telecom wins the bid to aquire 51% of Telkom Kenya
The Kenyan State has selected the consortium controlled by France Telecom as the preferred bidder for the acquisition of a 51% stake in the incumbent operator Telkom Kenya for a consideration of US$ 390 million (about 270 million euros). The transaction is planned to close before the end of the year. Telkom Kenya serves over 280 000 fixed line customers and will benefit from a new mobile license.
France Telecom has teamed up with Alcazar Capital Limited, who subscribed to a 15% stake in the consortium. A shareholder of Alcazar is Agility, one of the world's leading logistics services providers, which has a strong presence in emerging markets. France Telecom will benefit from Alcazar and Agility's knowledge of the Kenyan market.
This transaction fits very strongly with France Telecom's strategy of targeted development in fast growing markets. With France Telecom, Telkom Kenya will develop convergent telecommunication services, i.e. mobile, fixed and internet based. As mobile penetration is currently lower than 30%, the Kenyan mobile market still offers a high growth potential. France Telecom will benefit from the existing infrastructure of Telkom Kenya to develop and launch its 2.5 G network in the short term. The planned implementation of submarine cables in 2009 will give Telkom Kenya the means to offer affordable prices and become the leader on the high speed internet market. France Telecom aims to market Telkom Kenya's services under the Orange brand,