Airtel Africa Plc has announced the termination of a merger between its Kenyan subsidiary and another telecommunications company in the country, Telkom.
Airtel Africa recalled in a corporate filling at the Nigeria Stock Exchange (NSE) on Wednesday that both Airtel Kenya and Telkom Kenya Limited amongst other parties, had entered into an agreement dated 8th February, 2019 to combine their businesses in Kenya.
This was targeted at creating an integrated telecommunications platform with mobile, enterprise, and wholesale divisions.
The completion of the transaction was subject to the satisfaction of various conditions precedent, including regulatory approvals.
Despite Airtel Africa plc and Telkom respective endeavours to reach a successful closure, the Transaction has gone through a very lengthy process which has led the parties to reconsider their stances.
Accordingly, Airtel Africa plc and Telkom have decided to no longer pursue completion of the transaction.
Raghunath Mandava, Airtel Africa chief executive officer and managing director said: “Kenya is a large and growing market and we remain committed to build a growing profitable business.
“We currently serve more than 14 million Kenyan customers, a number that is growing month on month, and in the last quarter our revenue numbers were up double digit in constant currency in Kenya.
“Our strategy to focus on winning more customers, invest in a best in class voice and data network and progressively expand our mobile money business will continue to build on these results in order to deliver against the opportunities the Kenyan market has to offer.”