Vodafone Ghana agrees to sell a stake in operation to TELECEL: As the British telecoms company seeks to refocus on critical markets, Vodafone Plc has agreed to sell its business in Ghana to Telecel Group.
Subject to certain requirements, the London-listed business would sell its majority share in Vodafone Ghana to Telecel, an African-focused company, a Vodafone representative said in an email statement.
Vodafone entered Ghana in 2008 when it paid the west African county’s government $900 million for 70% of Ghana Telecommunications Co. The government retains a 30% holding in the business.
According to those with knowledge of the situation who declined to be named to discuss trade secrets, Telecel intends to subsequently sell the mobile towers owned by the Ghanaian company in order to contribute to the acquisition’s funding.
The National Communications Authority (NCA) has since stated that the sale did not comply with regulatory requirements, and Ursula Owusu-Ekuful, Minister of Communications, has also indicated that Telecel could not be permitted to purchase the majority of Vodafone Ghana’s shares because it was determined that it lacked the technical and financial capacity.
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Following those statements from the Ghanaian government, Telecel issued a press release announcing it would re-engage the NCA.
The business has also stated that it is prepared to purchase the majority of Vodafone Ghana’s shares with cash and that it plans to invest at least US$500 million in the network over the next three years.