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Essar Telecom Blocked from Selling Stake in Kenyan Subsidiary

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Staff working for Essar Telecom's Kenyan subsidiary, Yu have secured a court order blocking the Indian owner from selling a stake in the firm to outside investors.

Essar had recently said that it expects to raise around USD100 million for its Kenyan subsidiary by selling a stake in the firm within the next few months, and was talking to several interested parties.

However, for reasons that do not seem entirely clear, Yu employees have sought a court order blocking any sale, claiming that it would affect their rights.

The court order is an interim one, and a full hearing will be held later.

An order blocking the sale would bring the court into conflict with another law which requires Yu to have at least 20% of its shares owned by Kenyan investors. At the moment the company is solely owned by the Indian company.

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Tags: essar telecom  yu  Kenya