ceosTelecommunications company Essar has decided to sell its Kenyan company Yu mobile to Safaricom and Airtel.
Speaking to Sunday Nation, Yu mobile CEO Madhur Taneja revealed that the company had been sold for $ 100 million (Ksh 8.6 billion). In the deal, Safaricom would acquire Yu’s infrastructure and its technical staff of 130 people, while Airtel acquires the mobile company’s prefixes and its 2.7 million subscribers.
The deal was finalised under the supervision of Communication Commision of Kenya.
Essar had reportedly invested Sh35 billion in its Kenyan business, but has been making losses of about Sh3 billion annually. Internal projections further showed that the situation was not likely to change, hence the decision to sell.
In related news, about 230 Yu employees have gone to court to try and bar the new owners from changing their employment status or make changes that could change the positions they currently. The case is still pending in court.