Telecom provider, Telkom Kenya together with the American Tower Corporation (ATC), a wireless and broadcast communications infrastructure company based in Boston, USA, have announced the signing of an agreement that will see ATC obtain 723 towers from Telkom Kenya.
Helios Towers owns 70 percent of Telkom Kenya with the remaining stake being held by the Kenyan government. Helios bought the 70 percent Orange stake in Telkom Kenya which saw Orange Kenya rebrand to Telkom Kenya.
Eddy Njoroge, Telkom Kenya’s Board chairman noted,
“The Board of TKL has made it clear that our objective is to transform Telkom into a business which has a reputation for excellence in terms of the quality and reliability of its network. This agreement, in which we will be partnering with a leading global tower company, will enhance the quality and reliability of our network to the benefit of our customers,” he said.
William H. Hess, ATC President of EMEA and Latin America stated: “We are excited to announce the launch of operations in Kenya through our agreement to acquire TKL’s towers. This represents American Tower’s 17th market globally and our fifth in Africa, and we look forward to helping expand the reach of mobile broadband throughout the country. Kenya is a very attractive market, and we have high expectations for its long-term growth potential.”
Aldo Mareuse, CEO of Telkom said the sale will release capital for further investment in the company’s 4G network and a number of IT platforms.
The transaction is expected finalise in the second half of 2018 upon regulatory approval and customary closing.