CAK Approves Acquisition of Kenyan Telecom Tower Company by France-Based STOA

The Competition Authority of Kenya (CAK) has approved the proposed acquisition of control of Atlas Tower Kenya (ATK) Limited by STOA S.A., a France-based impact investment fund, unconditionally.

The proposed transaction involves the acquisition of a 31.03% minority shareholding, with veto rights, in ATK by STOA.

In a statement issued on Wednesday, November 5, CAK stated that it had determined the transaction is “unlikely to lead to a substantial prevention or lessening of competition in the market for the provision of telecommunication infrastructure in Kenya, nor elicit negative public interest concerns.”

STOA is an investment entity focused on large-scale infrastructure and energy projects in emerging and developing countries. In Kenya, it controls STOA Africa Limited.

CAK Approves STOA’s Acquisition of 31% Stake in Atlas Tower Kenya

Atlas Tower Kenya is a company incorporated in Kenya and wholly owned by Kalahari Capital LLC (Kalahari).

It develops, builds, and maintains telecommunication towers and related infrastructure for mobile network operators and internet service providers across the country.

The company owns and operates more than 450 telecom towers nationwide, providing critical digital infrastructure that enables mobile network operators to deliver reliable and widespread connectivity.

ATK has been operating in Kenya since 2019, with a blended mix of sites in urban, rural, and underserved areas.

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CAK noted that the transaction qualifies as a merger within the meaning of sections 2 and 41 of the Competition Act (CAP 504) of the Laws of Kenya.

The Act stipulates that a merger or takeover may occur when an undertaking directly or indirectly acquires control over another business in Kenya, through, among other means, the purchase or lease of shares, the exchange of shares, or vertical integration.

Furthermore, parties merging whose combined turnover or assets, whichever is higher, exceed KSh 1 billion are required to seek approval from the Authority before implementing a proposed transaction.

“The transaction between STOA S.A. and Atlas Tower Kenya met this threshold for mandatory notification and full analysis as provided in the Competition (General) Rules, 2019,” CAK stated.

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Watchdog Says STOA-Atlas Merger Unlikely to Affect Market Competition

According to the competition watchdog, the post-merger market share of the merged entity will not change, as the acquirer is not engaged in a similar line of business.

Therefore, the structure and concentration of the telecommunications infrastructure market are unlikely to be affected, and the transaction is unlikely to raise competition concerns.

Additionally, the merged entity will continue to face competition from other players, accounting for 96.75% of the market share.

This development follows STOA’s $27 million strategic equity investment in Atlas Tower Kenya, one of the country’s fastest-growing independent telecom tower companies, made in September of this year.

The investment marks a significant step in STOA’s strategy to support the expansion of sustainable digital infrastructure across Africa.

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