Safaricom and Airtel set to acquire Yu
Kenya’s leading operator Safaricom and Bharti Airtel’s subsidiary in the country have reportedly made a joint bid to acquire Essar Communications owned Yu, industry regulators said yesterday.
Yu is Kenya’s smallest operator and has been present in the country since 2008.
The Communications Commission of Kenya (CCK) said it received applications from both companies for the transaction, with Safaricom and Airtel planning to spend a combined $100 million.
Safaricom, which is 40% owned by Vodafone, will acquire Yu’s infrastructure, including base stations, in a bid to improve its network quality if the deal goes through.
Airtel is looking to make the acquisition in a bid to take Yu’s subscriber base, which it has been building since entering the Kenyan market six years ago.
Bob Collymore, CEO at Safaricom has said the company will make a formal announcement once the deal has been finalised.