The deal will see America Tower Corporation rise to the top 5 players in the African continent, with Kenya alone having 41 million mobile subscribers. The deal appears to be long term cost synergies.
On Monday, America Tower Corporation stated it will acquire Telkom Kenya’s transmission towers business for an undisclosed amount.
The deal, expected to conclude in the second half of this year, will enable Telkom Kenya to invest in its internet network, said both companies.
Through the strategic sale will act as a vehicle to place American Tower Corp into the top 5 telecom companies in the African company and 17th in the world.
Currently, Telkom Kenya is Kenya’s third-biggest telecoms company by users.
In a joint statement, both companies stated they American Tower Corp will acquire up to 723 towers from Telko for an undisclosed amount. The terms of the acquisition was not disclosed.
“The sale will release capital for further investment in our 4G network and a number of state-of-the-art IT platforms, all of which will further enhance services for our customers,” said Aldo Mareuse, CEO of Telkom Kenya.
Along with the Kenyan unit of Indian-owned Bharti Airtel, Telkom Kenya have a combined market share of 23% in Kenya’s 41 million mobile subscribers.
Both have strugled to compete with sector leader Safaricom, which dominates with a 71.9% market share.