Safaricom drops bid to acquire Essar’s Yu mobile assets.
Vodafone’s telecommunications company Safaricom has withdrawn bid on Yu mobile’s sale deal following the tough conditions given to the two contestants to be fulfilled in six months.
The contender has put it clear that they have taken time off to study the conditions and make a decision whether to go back to the transaction. The 14 conditions given to the telecoms include Safaricom opening up its M-Pesa agency network rivals Airtel, Orange and the newly licensed mobile virtual network operators in which Safaricom says it has taken years of cultivation as well as huge monetary values involved.
Both companies had been offered ownership grant by regulator Communications Association of Kenya tied with the conditions that included both of them buying licenses for 5.4 million each as well as transfer mobile money customers and maintain their numbers.
Safaricom is no longer interested with the deal as per now but will make public its decisions in three weeks.