Bharti Airtel is going through some wild swings today morning. The stock, which had closed on Friday at Rs.313.60, rose to Rs.316.90 and it is now in the red at Rs.312 levels.
The company’s subsidiary, Airtel Networks Kenya has signed an agreement with Telkom Kenya ("Telkom Kenya") for merging their respective Mobile, Enterprise and Carrier Services businesses in Kenya to operate as - 'Airtel- Telkom'.
The finalisation and closure of the transaction is subject to approval by the relevant authorities.
As per the agreement, both the partners will combine their operations in Kenya and establish an entity with enhanced scale, operational efficiency and strategic brand presence.
The entity will invest in networks to further accelerate roll out of future technologies. The Enterprise and Carrier Services businesses should benefit from a larger fibre footprint and an increased number of enterprise customers - including both large corporations and SMEs who would have access to a diverse portfolio of world-class solutions.
The deal will not involve Telkom Kenya's extensive real estate holdings and some government contracts for unspecified services, the company said.
No timeframe has been given for the deal, and both companies will operate as normal until the transaction is completed.