Business
Kenya in mobile phone share sale
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Mar 28, 2008 - 9:42:52 AM

The Kenyan government has launched a share flotation of Safaricom, the country's largest mobile phone network.

President Mwai Kibaki's administration is selling off a 15% stake in the company, a move which is expected to raise about $750m (£376m).

Analysts said the share sale had been greatly oversubscribed, with ordinary citizens the bulk of the buyers.

Opposition parties had tried to delay the issue because of uncertainty over Safaricom's other shareholders.

It will be the largest flotation ever on the Kenyan stock market.

The BBC's Karen Allen in Nairobi says that banks were packed with investors looking to buy shares.

She says that by the time the sale is finished, one in 10 working Kenyans is expected to own shares.

Most profitable

Registered in Guernsey in the Channel Islands, Mobitelea's owners remain unknown.

Media reports in Kenya have speculated that Mobitelea owns as much as 10% of Safaricom.

"They [the government] should have told this country who Mobitelea is, and whether they acquired the shares procedurally," opposition MP William Ruto told the BBC.

Kenyan Finance Minister reiterated that Mobitelea was not a direct Safaricom shareholder.

Safaricom is the most profitable company in the whole of east Africa, enjoying profits of $370m last year.

Employing more than 1,000 people, its 2007 revenues totalled $700m.

The sale comes even though Kenya does not have a full cabinet, as negotiations continue following last year's disputed elections.

Source:BBC