Helios Investment Partners, an Africa-focused investment firm managing funds totaling over $3bn, has agreed to acquire a 70% controlling stake in Telkom Kenya from the Orange Group.

The details of the transaction were not disclosed and Helios declined to comment on the deal.

The finalization of the transaction remains subject to approval from the relevant authorities.

The government of Kenya still owns 30% of the telecom provider, having reduced its stake from 49% at the time of the Orange investment as it could not meet its financial obligations.

France Telecom (which operates the Orange brand) paid $390m for a 51% stake in the company in 2007, hoping to make the company profitable by 2010.

The plan failed, however, after repeated losses and falling out with the government over management.

Orange increased its stake in 2012 to 70% after the Treasury failed to participate in a Sh34bn debt swap deal.

France Telecom previously said that reasons for its planned exit included a contention that that the Communications Authority of Kenya (the industry regulator) has not established a level playing field to help stop price wars.

Safaricom remains the dominant player in Kenya with 67.1% market share, followed by Airtel 20.2%, Telkom Kenya 10.8% and Equitel 1.9%.

An earlier attempt by the Orange Group to sell its 70% stake to Vietnamese telecoms firm Viettel didn’t work out, after the government refused to give in to some of its demands, including the immediate extension of all telecommunications licenses held by Telkom Kenya for another 15 years.

After several discussions, a binding agreement was finally signed between the Orange Group and Helios.

The Orange Group said the deal reflects “Orange's constant focus on optimizing its portfolio of assets. The Africa and Middle-East region is a strategic priority for the Group”.

Initially Helios was said to be targeting a 51% stake, leaving the government with a 29% holding, and with Orange retaining a 20% stake.

It’s understood that Helios is mainly eyeing the company's real estate assets worth KES 13bn.

Telkom Kenya is Kenya’s incumbent fixed-line operator and is the third player in the mobile market.

Established in 1999, the company provides integrated communications solutions in Kenya with the widest range of voice and data services as well as network facilities for residential and business customers.

As at June 2015, the company has a customer base of approximately 4 million customers on GSM, fixed and CDMA wireless platforms with a country-wide presence.

Established in 2004, Helios is one of the most prominent private equity firms investing in Africa.

The firm has a record of successful investment in businesses from start-ups to large corporate carve-outs.

Helios other interest in Kenya include a 12.4% stake in Africa Oil Corporation, a Canadian oil and gas company.