NAIROBI, Kenya, Jun 11 – The National Treasury Cabinet Secretary Henry Rotich on Friday announced the completion of the transfer of the majority shareholding of Telkom Kenya (TKL) from Orange East Africa (OrEA) to Jamhuri Holdings Limited (JHL); a company owned by Helios Investors III, a fund advised by Helios Investment Partners.
Helios through JHL has acquired 60 percent shareholding of Telkom Kenya; increasing the Government shareholding to 40 percent up from 30.
“As part of the transaction the Government of Kenya reached an agreement with Helios/JHL through which the Government has agreed not to exercise its pre-emptive right to purchase the OrEA Shareholder Loans in consideration of JHL agreeing to the Transfer of 10 per cent of the shares in TKL to the Government for a consideration of Sh1 such that the Government’s shareholding in TKL will increase from 30 to 40 percent,” Rotich explained at the signing ceremony on Friday.
The completion of the transaction means OrEA which was a 70 percent shareholder has fully divested from TKL.
“We trust that you will, in the not too distant future, find other investment opportunities in Kenya and we look forward to welcoming you back when such opportunities arise,” Rotich said in response to the OrEA pull out.
Babatunde Soyoye, co-founder and Managing Partner of Helios Investment Partners, said, “Helios is excited about the opportunity to work with all stakeholders to transform Telkom Kenya into a successful telecommunications operator in Kenya.
“We look forward to partnering with the company’s staff, customers, business partners, our co-shareholder GOK as well as the Kenyan public in general to progress the development of the telecommunications sector in Kenya.”
Rotich said they have seen the positive impact of Helios investments in other sectors of the economy and expressed optimism that their investment in TKL will have a transformative impact on the operations and standing of the company.
“We wish Helios well and look forward to interacting further, as we seek to find ways on how best we can achieve our mutual objective of growing TKL into a sustainable and prosperous business.”
He said although TKL has been facing a number of challenges for a fairly long time, with renewed focus and energy, it could turn around, be sustainable and able to compete effectively in the telecommunications sector.
“The last one year or so there has been an improvement in the performance of the company and many more Kenyans have become Orange subscribers.”
Eddy Njoroge, the Chairman of the Board of Directors of Telkom Kenya, also welcomed the JHL takeover. “Telkom Kenya is delighted to welcome Helios into the anchor shareholding of the company.”