CAIRO: An Egyptian telecoms firm has offered to pay $24 million for a stake in a losing unit of state-owned Telkom Kenya as part of the firm's restructuring process ahead of a planned privatization. Egypt Telephone Company, also called Quicktel, wants to acquire 70 percent of Gilgil Telecommunications Industries, a unit of Telkom Kenya that makes telephone poles and booths. It plans to pay 20 percent of the price as soon as the offer is approved, with the rest over a five-year period, according to tender documents opened by Telkom Kenya directors and government officials on Thursday. "The Egyptian Telephone Company have reached the finish line and we will evaluate [their offer], Telkom Kenya's managing director Sammy Kirui told a news conference after the bid was opened. After it begins to make profits, the government intends to sell 60 percent of its shares in Telkom Kenya on the stock market and to a strategic investor. Telkom had hoped Gilgil Telecommunications would have been sold outright, but opted for a joint venture when some of the six companies that picked up tender documents showed interest in running the pole treatment part only. Telkom would like whoever runs the pole unit to manage the booths as well. He added Telkom would start negotiations on the offer before the end of the year and then announce a final decision. Egypt Telephone Company is a private firm that produces, among other items, cordless telephone sets, GSM wireless phones and steel cabinets.
