Safaricom and Airtel to complete $120 million acquisition of yuMobile
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The deal was originally announced in March, but Safaricom was reported to have withdrawn from negotiations after objecting to approval conditions proposed by the Competition Authority of Kenya (CAK).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.