Telecel Group says it is willing to re-engage soon after putting together the necessary clarifications in the acquisition of a 70% stake in Vodafone Ghana.
The Group confirmed to the B&FT that it received authorities’ responses which have not granted the approvals yet, however it has signed a Sale and Purchase Agreement (SPA) with Vodafone for the eventual acquisition of the 70 percent stake in Vodafone Ghana.
The agreement is currently pending regulatory approval.
“Telecel Group and Vodafone have been in touch with Ghana’s Ministry for Communications, Bank of Ghana, and the National Communications Authority, to finalize all the regulatory requirements related to this transaction,” it said.
NCA’s denial
The National Communications Authority (NCA) denied blocking the sale of Vodafone Ghana to the Telecel Group.
Reports were rife that the alleged sale of Vodafone Ghana is in limbo as the government through the Ministry of Communications and Digitalisation (MoCD) has schemed to block the purchase of the company by the investors.
Sources say the ultimate plan is to add Vodafone Ghana to the AirtelTigo-Glo merger and create one formidable entity to compete with the overwhelming market leader, MTN.
Reports also suggest that at the next renewal of telecom licenses, Vodafone will be out of the picture and that will clear the way for the grand merger to happen.
But the NCA in a Press Statement on Tuesday, August 02, 2022, noted the claims are false and should be disregarded.
It explained, that Telecel Group only failed to meet the regulatory threshold for such takeover deals for approval to be granted.
“In January 2022, the NCA received an application for the transfer of 70% majority shares in Ghana Telecommunications Company Limited (Vodafone Ghana) from Vodafone International Holdings B.V. to the Telecel Group.
“In accordance with due process, the Authority evaluated the application on various criteria and engaged both Vodafone and Telecel Group. After a critical regulatory review and evaluation, the NCA concluded that the request did not meet the regulatory threshold for approval to be granted.”
Vodafone Ghana Acquisition
The acquisition is fully financed by Telecel Group and its partners. Telecel confirms that the potential sale of Vodafone Ghana Towers is not part of the acquisition funding.
Telecel hopes to successfully conclude this transaction and looks forward to engaging with staff and customers, who are important to the business.
Telecel’s business model is unique, which focuses its strengths on overcoming challenges through disruptive innovation. Ghana’s business climate suits the business models of Telecel Group and was the key enabling factor based on which the Group was able to reach an agreement with Vodafone.
Telecel Group has already made investments in Ghana as part of the Africa Startup Initiative Program “ASIP”, and it intends to spend around 500 million USD in the first three years to expand and refinance Vodafone’s network across the country.
About Telecel Group
Telecel Group operates in four different lines of business all under the telecom industry: (1) Telecel Mobile, which owns and operates several mobile operators in Africa and Europe; (2) Telecel Global Services, which provides wholesale, enterprise, and digital security services to telecom operators and enterprises worldwide; (3) Telecel Play, a digital platform that is digitizing mobile users; and (4) Africa Startup Initiative Program supports innovative startups in Africa and provides these innovative startups with the funding and guidance to scale up. For more information on the Telecel Group program, visit http://telecelgroup.com
– Additional files from thebftonline.com
