Same here...I am currently building a cash position just for this.

Woii

The merger is bad for the telco industry in Kenya

Negative plus negative number equals bigger negative.
Safaricom will entrench itself further as a monopoly

Wait and see

Obviously, it appears that you have asked the employees, so tell us: how do they do it?

From available audited reports, this outfit has never ever returned a profit in any one single year since inception as Kencell. Accumulated losses over the years are now approaching Sh100bn. It survives on cash handouts from the majority shareholders.

Nevertheless, its has made billions of shillings to former investors every time it changes ownership.....starting with Vivendi who sold to Meralli who sold to Celtell etc In each transaction, the exiting investor make a kill.

It is the classic demonstration of the bigger fool economic theory.

I suspect that Bharti Airtel have been unable to find a bigger fool than themselves and are now trying to offload some of the rotten tomatoes to the fellows who bought the rotten bananas called Telkom.

https://www.businessdail...6130-4lhb6dz/index.html

Telkom Kenya has put on sale Sh3.87 billion properties spread across the country as it seeks to raise cash for contribution to its upcoming merger with Airtel.

The telecommunications firm has hired property dealing firm, Axis Real Estate, to dispose of the prime assets sitting on about 17.8 acres of land.

Telkom said Wednesday it has requested its shareholders’ approval to raise the cash -- including through sale of its prime property -- to meet its part of the merger deal.

“Under the transaction, Telkom is required to contribute funds in cash to the combined entity. Both entities in the transaction will contribute cash, for purposes of the transition and the integration of systems and network elements,” Telkom said in a response to Business Daily queries.

The telco did not disclose the amount it is required to contribute, but said it has put all the 32 properties on sale to ensure it raises the money on time.
The property disposal is intended to preclude the option of a bank loan to fund the merger.

“The intention will be to market a list of properties, with the prospect of selling a number that will enable the business raise just the amount of funds required,” said Telkom.

Out of the 32 properties on sale, only six are empty plots while the rest are developed as commercial buildings and telephone exchanges.

Biggest property owner

Telkom Kenya, which is 40 percent owned by the Treasury and 60 percent controlled by private equity group Helios, is one of Kenya’s biggest property owners given its legacy as a State corporation.

Three of the properties, in Ruaraka, Muthangari and Lang’ata, are freehold while the rest are leases from the government and counties but owned by Telkom.

The leasehold properties include those in Bungoma, Embu, Kirinyaga, Kiambu, Kisii, Meru, Murang’a and Kajiado counties while in Mombasa the Makupa Exchange’s lease is held by Yusufali Jiwaji.

On February 8, 2019 Telkom and Airtel announced the signing of a binding agreement to merge their respective mobile, enterprise and carrier services businesses in Kenya into Airtel (to be renamed Airtel-Telkom).

Both companies have been disposing of assets in recent years to keep their businesses afloat, as stiff competition from market leader Safaricom has kept them unprofitable.

Last year, Telkom Kenya sold its 723 masts for Sh17.16 billion to American Tower Company (ATC), according to fillings at the US Securities and Exchange Commission.

Merger stalls

https://pbs.twimg.com/me...ormat=jpg&name=small

Telkom kenya ceo Mugo Kibati now says conclusion of merger with Airtel is uncertain on when it will be finalized

[quote=Ericsson]Safaricom acting CEO Michael Joseph wants Telkom Kenya and Airtel to pay a Sh1.2 billion debt before the two companies are allowed to merge.

Mr Joseph said that since Airtel explicitly said it will not take up Telkom’s liabilities it will be difficult to chase those debts after the merger.
In a letter to the Communications Authority of Kenya (CA), Safaricom said Telkom owes Safaricom Sh906.6 million while Airtel has a Sh390.7 million debt for interconnection, co-location and fibre services.

“We request the Authority’s intervention in ensuring that all the outstanding debts owed to us in relation to the said services are paid in full as a prerequisite for the approval of this transaction,” Mr Joseph said.

Safaricom also raised issues with spectrum stating that Telkom and Airtel’s combined entity will hold a bandwidth of 77.5 percent for its 17. 3 million subscribers while Safaricom will have 57.5 percent spectrum for its 31.8 million subscribers.
Safaricom said that in 2016 it agreed to a CA deal which denied it additional capacity in spectrum to allow for competition and that the imbalance should be addressed before the merger. It added that for a long time it has also carried additional costs due to its leading position in rolling out network and paying for licences which should now end since Telkom and Airtel are now a major player.

https://www.businessdail...9054-lrqwwez/index.html[/quote]
He does have a point on all those things. These guys were about to try and duck Ksh1.2 billion debt .