Ghana’s telecom regulator, the
National Communication Authority (NCA) has announced that it has granted
conditional approval for the transfer of 70 percent majority shares in Ghana
Telecommunications Company Limited (Vodafone Ghana) held by Vodafone
International Holdings B.V to Telecel Group.
According to a statement issued in
Accra on Monday, this is subject to concessions by the seller and
representations made by the buyer to the NCA.
It
explained that following the NCA’s decision, the Buyer (Telecel) 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, adding that the revised proposal from the Buyer
now meets the regulatory threshold and hence has granted conditional approval
for the transfer of shares to the Buyer including submission of strategies for
employee retention.
“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,” the statement said.
“In
addition, the Buyer has strengthened the overall governance and management team
and made firm commitments towards meeting the regulatory requirements of the
NCA,” it added.
The statement also assured
subscribers and all stakeholders that it would continue to work with Vodafone Ghana and the Buyer to
complete all outstanding regulatory requirements to ensure a smooth transition
and continuity of service delivery and improved choice for consumers and
competition within the industry.
It would be
recalled that in January 2022, the NCA received an application from Vodafone
Ghana to transfer 70% of its majority shares held by the seller to the
buyer.
The National
Communications Authority evaluated the application on various criteria and
engaged Vodafone Ghana and the Buyer. The NCA at the time concluded that
the request did not meet the regulatory threshold for approval to be granted.
By: Kanto Okanta
