05 Aug 2020
The Combination Transaction between Telkom Kenya Limited and Airtel Networks Kenya Limited
Nairobi, August 05, 2020: Following the announcement on February 8, 2019, of the intended merger of Telkom Kenya's mobile, enterprise and carrier businesses with Airtel Networks Kenya Limited, the company has been pursuing the various approvals required to complete the transaction.
Considering the challenges experienced in getting all the approvals required to complete the transaction, the company has simultaneously been evaluating alternative strategic options to strengthen its position and offering, within the market, as a genuine alternative for the consumer, enabling us to entrench our current brand as Kenya's preferred data network service provider.
After carefully reviewing the available options, Telkom has opted to adopt an alternative strategic direction and will no longer be pursuing the proposed joint venture transaction. This decision has been mutually agreed with Airtel Networks Kenya Limited.
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, with respect to how we do things, and the need to step-up. This accelerated digital transformation is particularly important within the telecommunications sector, owing to an increased demand for data and broadband. Consequently, the Notice of Redundancy issued by the Company on 31st July 2019 is withdrawn and the earlier envisaged redundancies no longer apply. Conversely, the new, bold and exciting direction the company is now embarking on, offers all Telkom employees the opportunity for greater career progression, as the company commences the new phase of its development, to establish itself as an essential player in the new digital world order.
The transformation dynamic also presents Telkom with a strategic advantage, to better position its infrastructure asset base and services, to support this digitisation and, in the mid to long term, bridge the consumer digital divide; connecting the unconnected by way of cutting-edge technologies such as Loon.
We wish to thank all our partners and stakeholders for their continued confidence in our strategic vision, as well as their unwavering support in our transformation journey and believe that, together, we will make it happen and do so successfully.
Chief Executive Officer