Wananchi sells business services unit to private equity fund SynCom
19 May 2017
After more than a year of negotiations, Wananchi Group has reached an agreement to sell its corporate internet and data unit Wananchi Business Services to Synergy Communications (SynCom) for an undisclosed figure. Wananchi Business Services provides wholesale internet, data security and satellite solutions services to the East African corporate and enterprise market via its business units SimbaNET, Wananchi Telecom and iSAT. The completion of the sale to SynCom, which is owned by African private equity fund Convergence Partners Communications Infrastructure Fund, will enable Wananchi Group to focus on its Zuku residential telecoms business.
‘The decision by the board to sell Wananchi Business Services has been guided by a desire to deepen Wananchi Group’s products and services portfolio within the consumer/retail service segment and to provide best-in-class customer experience to all our clients,’ commented Wananchi Group Chairperson Alex-Handrah Aime, adding: ‘We believe that the transaction will unlock shareholder value amidst a competitive and dynamic operating environment defined by rapid technological changes.’
The transaction requires approval from regulatory authorities in a number of countries, including Kenya’s Communications Authority and Competition Authority.