The Kenyan government has agreed to convert its Telkom Kenya debt into equity, thereby reducing its stake from 49% to 40% and increasing France Telecom’s to 60%, Kenya’s Business Daily newspaper has reported.
The agreement follows an earlier…
The Kenyan government has agreed to convert its Telkom Kenya debt into equity, thereby reducing its stake from 49% to 40% and increasing France Telecom’s to 60%, Kenya’s Business Daily newspaper has reported.
The agreement follows an earlier announcement that the Treasury would convert a KES4bn (US$46.59m) loan to the telco into shares, while France Telecom converted KES15bn (US$174.72m) into equity, the paper reported.
Analysts were cited as saying the agreement significantly overvalues the company at KES166.bn (US$1.93bn), given larger operator Safiricom has a market value of KES200bn (US$2.33bn).
Telkom Kenya and France Telecom were not immediately available for comment.
