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Safaricom offers to buy India's yuMobile for US$120 million

Michael Malakata | Aug. 11, 2014
East Africa's largest telecom operators Safaricom has offered to buy India's yuMobile for US$120 million after the Communications Authority of Kenya relaxed the terms it had imposed for the sale of the company.

Already France's Orange Telecom Kenya has said it was considering pulling out of the east African telecom market because of the Communications Authority of Kenya's decision to allow the buyout of yuMobile by Safaricom and Airtel.

This is mainly because the buyout of yuMobile by the two companies now means that Orange Telecom Kenya has become the smallest player in the Kenya telecom market and will expectedly be under extreme pressure from Safaricom and Airtel.

YuMobile entered the east African telecom market in 2008 after buying the Kenyan telecom business from Econet Wireless for $145 million. But the price war currently characterizing the Kenyan telecom market has been chewing into the operator's revenue putting the operator off the balance financially.

 

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