Orange could be close to brokering a deal that will see it complete its sought-after exit from the Kenyan telecoms market.
Private equity firm Helios Investment Partners is in talks with the French telco about its 70% stake in Orange Kenya, Business Daily reported earlier this week.
The paper’s source was Kenyan treasury secretary Henry Rotich, who confirmed that Orange has informed the government of its negotiations with Helios. The firm is close to concluding talks with Orange, at which point it will open dialogue with the government, he said.
The treasury holds the remaining 30% stake in Orange Kenya.
"They have told us that Helios is a serious buyer," Rotich sa id of Orange.
According to Business Daily, Helios is interested in acquiring 51% of Orange Kenya, which would leave Orange group with a small stake in the telco. However, the paper noted that Helios could also involve another partner to acquire that holding.
Orange admitted that it was conducting a strategic review of its businesses in Kenya and Uganda with a view to possibly selling out of both in March last year. It completed the sale of its 65.9% stake in Orange Uganda to Africell in November for an undisclosed sum.
However, thus far it has failed to find a buyer for Orange Kenya. It held talks with Vietnam’s Viettel last year, but the pair were unable to reach agreement. Viettel reportedly demanded an immediate 15-year extension of the telco’s operating licence and an additional 10% stake, which would have required the state to reduce its holding.
