Essar Group Sells Kenyan Subsidiary for $120 Million
Published on: 4th Sep 2014
Kenya's Safaricom and Airtel have formally signed the deal that will see them buying up the assets of Essar Group's local subsidiary, yuMobile.
They are paying USD120 million for the mobile network's assets in a move that has been expected for several months but had been delayed by regulatory difficulties.
The transaction has received approval from the Communication Authority (CA) in Kenya, subject to all parties involved in the transaction meeting certain pre-conditions. The transaction will now be filed with the Competition Authority of Kenya (CAK) for approval.
yuMobile will continue to operate and serve customers until final approval is granted.
yuMobile's Chief Executive Officer, Madhur Taneja said: "We would like to reassure our customers that they will continue enjoying our products and services uninterrupted. We have structured the transaction such that our customers will not need to change their mobile numbers or sim cards, post this transaction. Moreover, we expect that the intended transaction will bring bigger benefits through an expanded product bouquet to the customers."
Mr. Taneja further expressed his delight that as a part of the transaction, close to 90% of the yuMobile's employees will be absorbed by Safaricom and Airtel.