RUMOUR: MTN Business Set to Acquire Stake at Essar Kenya (Yu)
Our ears are out and before we get to let it slip out, we are hearing that MTN Business is set to acquire a very good chunk of controlling stake at Essar Kenya (Yu). The rumours have been out for sometime and efforts to get comments from both sides have not been fruitful.
A source at CCK says he has heard the rumour but the problem is that when these companies are talking informally, it is very hard to get much from them. They will only get to CCK when they are seeking the “no objection” letter. The letter will be given by CCK if the regulator is satisfied that the 20% minimum local shareholding is maintained.
Apparently MTN Business is interested in Yu because the latter has a big chunk of 4G spectrum licenses which will give MTN Business a good competetive edge over other operators. Both operators have a wall of silence around them on this matter. MTN Business recently made some suprise acquisition in the market secretly buying majority shareholding in UUNET Kenya.
Have you heard this? Do you think that MTN Business might acquire Yu?