The French telecommunication giant won the bid for the majority stake in the loss making Telkom Kenya with a bid of 26 billion shillings (approx US$396 million), six billion shillings (US$1 = approx 65.8 shillings) ahead of closest rival Telkom South Africa at 18 billion shillings.
The announcement on Friday brought the curtains down on a privatisation process that had been dogged by controversy since Telkom Kenya's inception in 1999.
The first attempt to privatise the firm was in 2000 when the government's attempt to shed 49% of its shareholding to Econet Wireless was cancelled on the basis of under-valuation.
The government reviewed and revived the plan in 2004, this time increasing the stake offered to 51%.
The bidding process, supervised by World Bank Country Director Collin Bruce went on smoothly despite allegation by politicians that the process had been compromised.
Bruce termed the whole exercise as transparent.
France Telecom Executive President Anne Bouverot described the success as a milestone and said the company already had a strategy in place to revive Telkom Kenya.
The Kenyan government had spent more than 60 billion shillings in restructuring the company.
France Telecom is one of Europe biggest telecommunications firms because it has a stake in more than 10 African countries.
Last week Finance Minister Amos Kimunya disputed claims that the sale would interfere with the operations of Safaricom.
He said the legality of the transaction had been endorsed through the passing of a bill by the 9th parliament.
The sale of the 51% in the loss making company would streamline its operations and help it diversify its operations.
He denied claims that the strategic partner would assume control of the firm's operations, saying that everything will be done through consultation with all the stakeholders.
Article published courtesy of BuaNews
