Gov’t Gives Final Approval For Vodafone Takeover
The government of Ghana has given the final approval for the transfer of Vodafone Ghana’s majority shares to the Telecel Group.
In a press statement dated February 21, 2023, the National Communication Authority (NCA) confirmed the development.
“The National Communications Authority wishes to confirm that it has given final approval for the transfer of the 70% majority shares in Vodafone Ghana (Ghana Telecommunications Company Limited– GTCL) held by Vodafone Group PLC to the Telecel Group.”
The final approval follows the government’s satisfaction with the conditions outlined in the conditional approval of the shares transfer, including the agreement that the Government of Ghana remains the 30% minority shareholder.
Sale Of Vodafone
In mid-January, the National Communication Authority (NCA) gave the green light for the transfer of the 70% stake owned by Vodafone Group Plc in Vodafone Ghana to the Telecel Group- an Africa-focused telecommunication service provider.
This was after the NCA had blocked the transaction in 2022 citing irregularities in their proposal.
“In accordance with due process, the Authority evaluated the application on various criteria and engaged both Vodafone Ghana and Telecel group. After the criteria regulatory review and evaluation, the NCA concluded that the request did not meet the regulatory threshold for approval to be granted”, the Authority explained last year in a statement.
In a press statement dated January 16, 2023, the Authority said it had given Vodafone the nod to proceed with the transaction with Telecel.
“The National Communications Authority (NCA) is pleased to announce that pursuant to the evaluation of the revised proposal from the Telecel Group, it has granted approval for the transfer of the 70% majority shares in Ghana Telecommunications Company Limited (Vodafone Ghana) held by Vodafone International Holdings B.V. (the Seller) to Telecel Group (the Buyer) subject to concessions made by the Seller and representations made by the Buyer to the NCA.”
It explained that “following the NCA’s decision, the Buyer resubmitted a revised financial and technical proposal in December 2022 which demonstrated the needed capital investment to extend the deployment of 4G and launch innovative Fintech solutions.
“The NCA found that the revised proposal provided more clarity and certainty in terms of the funding required for the acquisition and the commitments from both the Seller and Buyer. In addition, the Buyer has strengthened the overall governance and management team and made firm commitments towards meeting the regulatory requirements of the NCA.”
In its statement on February 21, the Authority said it will continue to guide the takeover process in accordance with the existing licence conditions of Vodafone Ghana while ensuring that the interests of consumers are held paramount.
The NCA further assures the public that due process will be followed in the interest of all parties.
Source: opemsuo.com/Hajara Fuseini
