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Essar Kenya Seeking Bank Loans to Fund Network Upgrades
Published on:
Essar Kenya, which trades as Yu, is seeking a US$250 million bank loan to fund network upgrades in a move which reduces its reliance on its shareholders for financing.
The company is 20% owned by local businessmen Peter Kibiriti and Jos Konzolo, and 80% by India's Essar Group.
"As a loss making company we have relied on shareholders for the bulk of the Sh40 billion Yu has invested since its entry in Kenya four years ago," Madhur Taneja, the country manager of Essar Kenya told the Business Daily in an interview last week.
"We are racing ahead of time by raising the $250 million which will need new markets and upgrade our infrastructure," added Mr Taneja.
Essar Group took control of the Kenyan company in September 2009, when it raised its stake from 25% to 70% after it bought stakes from Econet Wireless.
On the web: Business Daily
Tags: [essar kenya] [Kenya]
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