Is Helios’ acquisition of Telkom an opportunistic investment?

France’s Orange announced last month that it is selling its 70 per cent stake in Telkom Kenya to equity fund Helios Investment Partners. This so far has been music to the ears of the Treasury. It had previously insisted it wanted a partner that understands Kenyan market dynamics, has a viable business strategy, and the technical and financial muscle to run the telco. This could have given Helios an upper hand over others.

In other words, in Helios, Telkom has found deep pockets, the right strategy and an understanding of the local market. But is Helios’ acquisition of Telkom Kenya a business turnaround or an opportunistic investment?