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Telkom and Airtel Kenya Merger?
chiaroscuro
#61 Posted : Wednesday, September 04, 2019 11:56:59 AM
Rank: Veteran


Joined: 2/2/2012
Posts: 1,134
Location: Nairobi
watesh wrote:
[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 .


And now they [read Mugo Kibati] wants us to believe that SCOM is unfairly preventing them from merging!
Ericsson
#62 Posted : Wednesday, September 04, 2019 12:13:27 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,626
Location: NAIROBI
chiaroscuro wrote:
watesh wrote:
[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 .


And now they [read Mugo Kibati] wants us to believe that SCOM is unfairly preventing them from merging!


Mugo Kibati is becoming a noise maker and hot air.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#63 Posted : Wednesday, September 04, 2019 4:31:41 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,626
Location: NAIROBI
https://pbs.twimg.com/me...t=jpg&name=4096x4096
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#64 Posted : Thursday, September 19, 2019 12:54:52 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,626
Location: NAIROBI
https://kenyanwallstreet...m-retrenches-800-staff/

Mobicom, in a letter sent out to staff members, highlighted that the firm’s business in the country had reduced by 90 per cent prompting the mass layoff.

Mobicom blames its woes on the dragging merger between Telkom and Airtel that has failed to complete on time as anticipated.

In a statement, Mobicom said that for over a month operations issues with its principal Telkom had led to the temporary suspension of their account leading to delay in the provision of merchandise such as airtime and lines. The delay in supply has negatively affected the sales and subsequently the revenues.

Mobicom staff were given a one-month leave between August 13 and September 12 before issuing termination letters effective August 31.

In addition, out of Mobicom’s 98 dealerships across the country, only three were still operational following the sacking.

The mass layoff adds to the 575 workers that Telkom Kenya lay off claiming they will be redundant following the Airtel merger.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
Ericsson
#65 Posted : Thursday, September 26, 2019 7:38:47 AM
Rank: Elder


Joined: 12/4/2009
Posts: 10,626
Location: NAIROBI
Airtel is broke and having cashflow issues.
Mugo Kibati has gone quiet.
Safaricom riding high
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
mwekez@ji
#66 Posted : Thursday, September 26, 2019 10:25:41 PM
Rank: Chief


Joined: 5/31/2011
Posts: 5,121
VituVingiSana
#67 Posted : Thursday, September 26, 2019 11:02:58 PM
Rank: Chief


Joined: 1/3/2007
Posts: 18,038
Location: Nairobi
Ericsson wrote:
Airtel is broke and having cashflow issues.
Mugo Kibati has gone quiet.
Safaricom riding high
It was a poisoned chalice.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Ericsson
#68 Posted : Friday, January 31, 2020 3:34:25 PM
Rank: Elder


Joined: 12/4/2009
Posts: 10,626
Location: NAIROBI
https://www.businessdail...9146-hd0768z/index.html

Airtel and Telkom Kenya have appealed merger conditions set by the Competition Authority of Kenya (CAK), seeking that they are reviewed and set aside.
The competition watchdog gave a nod for the merger on December 13, 2019 but barred them from among other requirements making any new sales agreements over the next five years.
CAK also barred the companies from selling or buying frequency licences, and ordered Telkom Kenya to reverse its frequency to the government upon expiry of the lease period.

In addition, the telcos were ordered to retain staff for a period of two years. But the companies want this revised to 12 months and that they are allowed to release their annual reports two years from the merger date.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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