Speculation rife at Safaricom parent company takeover
18 December 2013, 14:22
Nairobi - A major shakeup is looming in the local telecommunications industry as American-owned AT&T realigns its prospects in Kenya and the rest of the continent.
AT&T is reportedly in the process of sealing a deal that will see it takeover Vodafone, which has operations in many countries in Africa and owns at least 40 percent of Kenya’s largest telecommunication company, Safaricom.
Vodafone operates under the Vodacom title under which it operates in Africa, Middle East and Asia.
Vodafone officials did not rule out a takeover when asked about such prospects.
“We have a strategy and we are putting a lot of money into it, but if somebody comes and says ,you have really beautiful assets, then I will agree to listen to a deal,” Vodafone Group Chief Executive Officer, Vittorio Colao, was quoted as saying in relation to the AT&T stated interest in the company.
In Kenya, the subsequent acquisition of Safaricom would change the telecommunications landscape in the country where Safaricom has the largest subscriber base.
The speculation comes amid reports shareholders of another global operator, the French-headquartered, Orange, are set to buy Safaricom and incorporate it.
– CAJ News