Tuesday, 11 March 2014

Orange Considering Sale of Kenyan and Ugandan Subsidiaries

                                                         

Fance's Orange has confirmed that it is reviewing the status of its Kenyan and Ugandan operations and would look to reduce its stakes or even sell the companies.
Orange spokesman, Tom Wright said that the company is conducting a review in Uganda and Kenya as part of an evaluation of its footprint
"One option would be to find new partners in these countries to ensure the necessary financial and operating resources are available to maintain investment and support the continued development of operations," he said.
The company's operations in both have struggled in recent years, but Orange said that regardless of what happens, it is still committed to the African continent.
Orange owns 95 percent of Orange Uganda and and 70 percent of Telkom Kenya, and has hired an investment bank to advise on the options.
The Kenyan government recently declined to participate in a funding round for Telkom Kenya, and saw its stake shrink to 70%. However, the intense competition in the market may reduce somewhat following the planned asset stripping of the Yu Mobile network.

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