The merger, analysts said, will also boost valuation in the runup to its initial public offer (IPO) in Africa, likely in May-June.
The merged entity will be known as Airtel-Telkom, which will invest in networks to further accelerate rollout of future technologies, as per Airtel statement.
Telkom Kenya is 60% owned by UK private equity firm Helios Investment Partners and the rest by the Kenyan government. It’s the third-largest telco in that country, with over 5 million users, behind market leader Safaricom with over 30 million and Airtel Kenya, with over 10 million customers.
The combined entity will have over 31% customer market share, while Safaricom has 60% base.