The transfer of the 70% stake of Vodafone Plc in Ghana will now push through after the country’s National Communications Authority (NCA) approved.
The Ghana Telecommunications Company, known as Vodafone Ghana last year tried to sell its stake to Telecel Group, an Africa-focused telecommunication service provider.
The deal was restrained by NCA after a review of the application for the transfer.
“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.
It discredited claims that it was hampering the transaction and noted that the decision to turn down the application complied with the regulatory framework and international best practices.
In a press statement on January 16, 2023, the NCA announced it has 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, “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.
“Based on the above, the NCA confirms that the revised proposal from the Buyer now meets the regulatory threshold and hence has granted a conditional approval for the transfer of shares to the Buyer including submission of strategies for employee retention.”
The NCA assured the public of its cooperation with Vodafone Ghana and the Buyer to complete all outstanding regulatory requirements to ensure a smooth transition.
Source: opemsuo.com/Hajara Fuseini