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Telkom Airtel Merger
Stiffler
#1 Posted : Sunday, April 08, 2018 12:38:19 PM
Rank: Member

Joined: 11/7/2017
Posts: 186
Location: Nairobi
If this happens, they might stand a chance of giving Safaricon a run for their money

Airtel and Telkom to merge in a bid to stem loss making streak

https://www.google.com/a...stem-loss-making-streak[color=orange][/color]
obiero
#2 Posted : Sunday, April 08, 2018 2:20:44 PM
Rank: Elder

Joined: 6/23/2009
Posts: 14,213
Location: nairobi
Stiffler wrote:
If this happens, they might stand a chance of giving Safaricon a run for their money

Airtel and Telkom to merge in a bid to stem loss making streak

https://www.google.com/a...stem-loss-making-streak[color=orange][/color]

I approve of the move..

KQ ABP 4.26
Ericsson
#3 Posted : Sunday, April 08, 2018 5:24:58 PM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
We wait to see what the combined strategy will be if the merger progresses
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
kawi254
#4 Posted : Sunday, April 08, 2018 11:48:01 PM
Rank: Member

Joined: 2/20/2015
Posts: 468
Location: Nairobi
obiero wrote:
Stiffler wrote:
If this happens, they might stand a chance of giving Safaricon a run for their money

Airtel and Telkom to merge in a bid to stem loss making streak

https://www.google.com/a...stem-loss-making-streak[color=orange][/color]

I approve of the move..


For the last x years Safaricom has heavily invested in it's network while Airtel & Telkom have put in very little. To catch up with Safaricom Airtel & Telkom need massive investments and neither Bharti & Helios want to put in some skin in the game. They both want out at a profit and like the venture capitalists they are they are packaging a TelCo that can attract a bid from someone with big financial muscle e.g MTN** . Even for a big player like MTN getting in now is not viable. Safaricom will monopolise the sector for a long time barring some radical shift in technology that would open up the telecommunication market to competition.

Wororo
#5 Posted : Monday, April 09, 2018 9:41:09 AM
Rank: Member

Joined: 1/30/2011
Posts: 207
Ericsson wrote:
We wait to see what the combined strategy will be if the merger progresses


The merging talks have been ongoing since mid last year...

I guess it's just a matter of time before its announced and then executed...
Chaka
#6 Posted : Monday, April 09, 2018 9:58:19 AM
Rank: Elder

Joined: 2/16/2007
Posts: 2,114
Airtel operates in a number of countries..is Telkom also present in those countries?If not,how does this selective merger work?
Wororo wrote:
Ericsson wrote:
We wait to see what the combined strategy will be if the merger progresses


The merging talks have been ongoing since mid last year...

I guess it's just a matter of time before its announced and then executed...

Ericsson
#7 Posted : Monday, April 09, 2018 10:46:05 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
Chaka wrote:
Airtel operates in a number of countries..is Telkom also present in those countries?If not,how does this selective merger work?
Wororo wrote:
Ericsson wrote:
We wait to see what the combined strategy will be if the merger progresses


The merging talks have been ongoing since mid last year...

I guess it's just a matter of time before its announced and then executed...



The discussed merger is Airtel kenya and Telkom kenya only
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Wororo
#8 Posted : Monday, April 09, 2018 11:02:31 AM
Rank: Member

Joined: 1/30/2011
Posts: 207
Chaka wrote:
Airtel operates in a number of countries..is Telkom also present in those countries?If not,how does this selective merger work?
Wororo wrote:
Ericsson wrote:
We wait to see what the combined strategy will be if the merger progresses


The merging talks have been ongoing since mid last year...

I guess it's just a matter of time before its announced and then executed...



In Ghana, Airtel merged it operations with Tigo Ghana which was second to MTN Gh to form AirtelTigo, In Rw Airtel bought out Tigo Rw which was the second largest telco after MTN Rw...

Airtel merging with Telkom KE is simply trying as much as possible to satisfy the basic goal in any business - making profit...

Airtel KE hasn't been able to do so and don't seem to make it happen in the near future...

So the only possible way is merging with Telkom even if they end up being the minority shareholder but make a profit at the end of the day...

Consolidation is the only strategy Airtel Africa has to adopt to survive esp now they are facing stiff competition at home (India) from Vodafone-Idea Cellular merger and Jio ...

It's survival for those who can adapt and quickly ...
Chaka
#9 Posted : Monday, April 09, 2018 11:18:09 AM
Rank: Elder

Joined: 2/16/2007
Posts: 2,114
Ok,this merger thing would make more sense to me if we had Tigo KE,ie if Telkom was Tigo KE?
Wororo wrote:
[quote=Chaka]Airtel operates in a number of countries..is Telkom also present in those countries?If not,how does this selective merger work?
[quote=Wororo]

In Ghana, Airtel merged it operations with Tigo Ghana which was second to MTN Gh to form AirtelTigo, In Rw Airtel bought out Tigo Rw which was the second largest telco after MTN Rw...

Airtel merging with Telkom KE is simply trying as much as possible to satisfy the basic goal in any business - making profit...

Airtel KE hasn't been able to do so and don't seem to make it happen in the near future...

So the only possible way is merging with Telkom even if they end up being the minority shareholder but make a profit at the end of the day...

Consolidation is the only strategy Airtel Africa has to adopt to survive esp now they are facing stiff competition at home (India) from Vodafone-Idea Cellular merger and Jio ...

It's survival for those who can adapt and quickly ...

Ericsson
#10 Posted : Monday, April 09, 2018 11:51:15 AM
Rank: Elder

Joined: 12/4/2009
Posts: 10,804
Location: NAIROBI
There was also talk sometime back that James Mwangi and Equity Group Holdings was interested in acquiring airtel
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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