Airtel Networks Kenya Limited, a subsidiary of Airtel Africa Plc, and Telkom Kenya Limited have decided to discontinue the completion of a joint venture deal due to the lengthy process of the transaction which has been on since February 2019.
This was disclosed in a notification sent to the Nigerian Stock Exchange (NSE) by Airtel Africa on Wednesday.
The notification disclosed that Airtel Kenya and Telkom had entered into an agreement to combine their businesses in Kenya, so as to create an integrated telecommunications platform with mobile, enterprise, and wholesale divisions (the transaction).
“The completion of the transaction was subject to the satisfaction of various conditions precedent, including regulatory approvals,” the notification read.
“Despite Airtel Africa Plc and Telkom respective endeavours to reach a successful closure, the transaction has gone through a very lengthy process which has led the parties to reconsider their stance.
“Accordingly, Airtel Africa Plc and Telkom have decided to no longer pursue completion of the transaction.”
Speaking on the decision, Raghunath Mandava, CEO/MD of Airtel Africa, said the company will focus on more investment opportunities.
“Kenya is a large and growing market and we remain committed to build a growing profitable business. We currently serve more than 14 million Kenyan customers, a number that is growing month on month, and in the last quarter, our revenue numbers were up double digit in constant currency in Kenya,” he said.
“Our strategy to focus on winning more customers, invest in a best in class voice and data network and progressively expand our mobile money business, will continue to build on these results in order to deliver against the opportunities the Kenyan market has to offer.”
In a separate statement on Wednesday, Mugo Kibati, CEO of Telkom, said: “Our confidence in Telkom’s new direction is further bolstered by the accelerated digital transformation brought about by the recent dynamics of the COVID-19 pandemic, that has made both businesses as well individuals, acutely aware of the need to review direction.”