France's Orange has completed the sale of its entire 70 percent stake in Orange Kenya to private equity firm Helios Investment Partners for an undisclosed amount. Kenya's Treasury Cabinet Secretary Henry Rotich announced the completion of the transfer of the majority shareholding of Telkom Kenya from Orange East Africa (OrEA) to Jamhuri Holdings (JHL), a company owned by Helios Investors III, a fund advised by Helios Investment Partners. Helios has acquired 60 percent of Orange Kenya and the government has raised its stake in Orange Kenya to 40 percent from 30 percent.
As part of the transaction, the government reached an agreement not to exercise the state's pre-emptive right to purchase the OrEA shareholder loans in consideration of JHL agreeing to transfer 10 percent of the shares in Orange Kenya to the government for KES 1.
Babatunde Soyoye, co-founder and Managing Partner of Helios Investment Partners, said Helios is excited about the opportunity to work with all stakeholders to transform Orange Kenya into a successful telecommunications operator. Rotich said they have seen the positive impact of Helios investments in other sectors of the economy and expressed optimism that its investment in Orange Kenya will have a transformative impact on the operations and standing of the company. He said although Telkom Kenya has been facing a number of challenges for a fairly long time, with renewed focus and energy, it could turn around, be sustainable and able to compete effectively in the telecommunications sector.
