Kenyan Government to Push Ahead with Safaricom Sale

Investment banking group, Morgan Stanley - which is advising on the planned privatisation of Kenya's Safaricom has defended its valuation of the company following allegations by opposition politicans that it has undervalued the company.

Yesterday, ODM secretary-general, Anyang' Nyong'o called for a delay in the privatisation until the valuation of the company was reassessed.

Dr Nina Weiden, a vice-president at Morgan Stanley, said the valuation had been informed by the worth of other African mobile operators. "Ours is a global firm with a reputation to maintain and there would be no reason for us to short value Safaricom," she said. She however declined to make the valuation report public terming it "confidential information only accessible to Treasury and the Privatization Commission."

Investment Secretary, Esther Koimet said the Sh200 billion valuation was a discounted price and that the actual value is in excess of Sh243 billion. However, as is common with most privatisations - there has been a level of discount to make the offer appealing to retail investors. Under the terms of the sale, any foreign investors will have to pay a premium.

On the subject of the request for a delay - Koimet said "I think it is fair to say that the transaction will proceed. We are scheduled to launch the offer on Friday morning,"

Posted to the site on 27th March 2008

Email this article to a collegue

Printer Friendly Version