What people tend to forget is that as much as safcom is trying to maintain its profitability, growth patterns, earnings and shareholders value by the virtue of being a public listed company the other telcos too have got the same responsibilities in their home states be it India or France. The main purpose of any company acquiring a subsidiary is to diversify its income streams, increase earnings and shareholder value. With this in mind, how long do you think bharti shareholders are ready to let a subsidiary erode its earnings/wealth that so far are not impressive due to stiff competition in India? The arabs let go with all of their oil money and government's backing when call prices were still high and held onto profitable operations!With bharti its not if but when are they going to sell to another 'investor.'
When its all said and done, safaricom is an all round ICT company that has made massive investments in the sector and buyouts that have set it as a force to reckon with. Simply said safaricom is a share for a long term investor, if you are a speculator then wachana nayo.
Remember that safaricom has not yet ventured out of Kenya, with the realisation of the common market they may venture out of Kenya to the neighbouring countries. They are well diversified. Its fundamentals are strong and with any ICT company, it embraces innovation which is the main driver of any ICT company.
Long term investors, watch this space.
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary