Early in the year Airtel and Telkom signed a deal that should see the two telecommunication companies merge their operations.
The deal will only include mobile, enterprise and carrier services but not Telkom’s real estate portfolio.
It appears some how mischievous. According to 2015 evaluation Telkom’s real estate was estimated at sh13 billion comprising of land, sports clubds, buildings, frequency spectrum and undersea optic cables.
The biggest problem would be the fact that the shareholding after the merger will be determined at the close of transaction.
According to the law, the two companies will have ceased to exist and their operations and stocks given to the new company after the merger, Airtel- Telkom.
The merger will close when the shareholding and share value is unknown. This should point to a mega economic fraud against taxpayers.
British private equity firn, Helios Investments owns 60% of Telkom they bought from France. 40% is owned by the government of Kenya.
With clear indications that the merger is a serious scam, regulating authorities have given it thumps up including Capital Markets Authority and Competitions Authority of Kenya.
The approvals have completely turned a blind eye on the losses taxpayers will incur.
Only Ethics and Anti Corruption Commission is the only institution that has come out to protect the public interest in the cooking scam.
EACC dismissed senate and Telkom CEO, Mugo Kibati’s claims that it cleared the deal noting that it will ensure that public funds are lost in the merger.
The deal will see Airtel absorb Telkom which is a public entity.