Ghana finalises the sale of Vodafone’s majority stake to Telecel

The transfer of Vodafone’s Group Plc’s 70% ownership stake in Ghana Telecommunications Company Limited to Telecel Group has received final approval from Ghana.

After Telecel submitted a new technical and financial proposal in December 2022, the sale was approved.

An initial selling plan put up by Vodafone Ghana at the beginning of last year was rejected by the sector regulator, the National Communications Authority (NCA), since it did not adhere to necessary regulatory criteria.

The new proposal, according to the NCA, met the regulatory requirements and provided additional clarity regarding the cash needed for the transaction.

Top Telecel executives have stated that the company plans to utilise the acquisition of Vodafone Ghana as a springboard into the capital markets to acquire money for its operations in Ghana.

As a result, Telecel has stated that it intends to launch an Initial Public Offering (IPO) after receiving the necessary government regulatory permissions to buy the majority of Vodafone Ghana.

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The $500 million all-cash transaction is a component of Telecel’s African development plan.

The final approval follows “satisfaction of conditions outlined in the conditional approval of the shares transfer, including the agreement of the Government of Ghana, who remains the 30% minority shareholder,” the National Communications Authority (NCA) explained in a release on Tuesday morning (Feb. 21, 2023)

You may recall that the NCA had stated on January 16, 2023, that after reviewing the revised proposal from the Telecel Group, it had given conditional approval for the transfer of the 70% of Vodafone Ghana’s shares held by Vodafone Group Plc (the Seller) to Telecel Group (the Buyer), subject to the Seller making the necessary concessions and the Buyer making the necessary representations to the NCA.

According to the statement, the regulator would keep the takeover process on track and in conformity with Vodafone Ghana’s current licence requirements while making sure that the interests of the customers come first.

The NCA also gives the public the assurance that the interests of all parties will be served by following the law.

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