Bharti Airtel to merge Kenya biz with Telkom Kenya
Bharti Airtel informed bourses that its subsidiary, Airtel Networks Kenya Limited (Airtel Kenya) has entered an agreement with Telkom Kenya Limited (Telkom Kenya) for merging their respective Mobile, Enterprise and Carrier Services businesses in Kenya to operate as - 'Airtel- Telkom'.
As per the agreement, both the partners will combine their operations in Kenya and establish an entity with enhanced scale, operational efficiency and strategic brand presence. The entity will invest in networks to further accelerate roll out of future technologies. The Enterprise and Carrier Services businesses should benefit from a larger fibre footprint and an increased number of enterprise customers. The finalisation and closure of the transaction is subject to approval by the relevant authorities.
Recently, Bharti Airtel reported its third quarter result for FY19, its consolidated net profit for the quarter was at Rs. 86 crore as against Rs. 306 crore profit in Q3FY18. Consolidated revenue of Q3FY19 remained largely flat at Rs. 20,519 crore. Going ahead, it seems that Jio’s aggressive pricing strategy is not coming to an end at least in the near term, which would put pressure on other telecom operators.
When the broad market was witnessing selling pressure, the stock of Bharti Airtel which opened at Rs. 310.9 apiece touched intra-day high of Rs. 314.40, up by a per cent. The stock on Friday ended near to its day high at Rs. 313.60 apiece