01 September 2014
Essar Capital is said to have entered a binding agreement with Bharti Airtel and Safaricom for the sale of its Kenyan mobile operator, yuMobile.
The $120 million deal will see
Safaricom acquire Essar Telecom Kenya’s network,
IT and office infrastructure, while Airtel will acquire
yuMobile’s 2.55 million subscribers.
The deal was originally announced in March, but Safaricom was reported to have withdrawn from
negotiations after objecting to approval conditions
proposed by the Competition Authority of Kenya (CAK).
Safaricom, however, was thought to have re-entered the deal at
the beginning of August. The transaction has received
conditional approval from the CAK, and the deal is expected to
close in Q4.