Essar promoted yuMobile in Kenya set to sell its Mobile Business

As a result of this development, India's Bharti Airtel is likely to get yuMobile's customer base and Safaricom can get its network infrastructure.    

At a time when telecom business is going through a wave of mergers and acquisitions and new age business models are being invented, India's Essar promoted yuMobile, operated by Essar Telecom Kenya Limited, in Kenya is set on a path to sell its operations to two different buyers. As a result and as confirmed by industry experts, India's Bharti Airtel is likely to get the company's more than 2.7 million customers, while its network infrastructure is likely to be bought by Safaricom.

While yuMobile has been investing heavily in terms of incorporating quality network components, the company struggled to match its spent with the increase in its subscriber base and as a result, it has been undergoing difficult times.

While yuMobile has not named the buyers that it is engaged with, it has confirmed on this move towards selling its network and customer base, separately. In a statement sent to TelecomDrive, the company said that it has filed an application with the Communications Authority of Kenya (CAK) for an intended transaction to transfer its part of telecom business in Kenya.

"The company is engaged in substantive talks with two potential suitors who are willing to takeover its subscriber base and assets, subject to requisite approvals by the authorities. We believe this proposed transaction will benefit all stake holders and the Telecom Industry in Kenya,” said a yuMobile spokesperson.

“We would like to re-assure our customers that they will continue to enjoy the same benefits, products and services and remain un-impacted in this process. We would like to reassure our partners, vendors and other stake holders that the transition would be seamless on obtaining necessary approvals," the spokesperson added.

If the deal goes through, Bharti Airtel is set to gain from it in a big way, as it will give the company a big edge in the form of an increased subscriber base, over its arch rival Safaricom in Kenya.

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