Safaricom eyeing shareholders’ nod for Sh7b yuMobile deal

Safaricom Chief Executive Bob Collymore. The telco is seeking shareholders’ approval to buy yuMobile infrastructure. [PHOTO: FILE/STANDARD]

NAIROBI, KENYA: Safaricom is formally seeking the approval of its shareholders to acquire various assets of Essar Telecom, the operators of yu mobile network, for Sh6.9 billion ($69.25 million).

As a first towards the realisation of this dream, Safaricom wants to fully acquire East Africa Tower Company Ltd from Essar for Sh88 million ($1 million). East Africa Tower Company manages all the sites and base stations of Essar Telecom. Safaricom has also amended the notice of its annual general meeting slated for September 16 and will be seeking, as a special business, the approval of the shareholders to acquire 100 per cent shareholding in East Africa Tower Company Ltd. If this approval is granted, and subject to the approval of the Communications Authority of Kenya (CA), East Africa Tower Company Ltd will become a wholly owned subsidiary of Safaricom Ltd.