FeaturesBharti Airtel Ghana Holdings and MIC Africa B.V transfer shares to Ghana

16 April, 20217 min

The Government of the Republic of Ghana and the parent companies of AirtelTigo; Bharti Airtel Ghana Holdings and MIC Africa B.V, have concluded negotiations and signed an agreement that transfers the shares of the Telecommunication Company to the Ghanaian Government. This agreement make the Government a 100% holding of the telecom company.

Airteltigo until this agreement was a joint venture between Bharti Airtel Ghana Holdings and Millicom Internationa Celular SA. In October 2020, Bharti Airtel (Airtel Ghana) and Millicom Ghana(Tigo) announced that they were exiting the Ghanaian market and this agreement concludes the extensive negotiations between the parties to ensure a seamless transition and continued operation of AirtelTigo thereafter.

According to the Press Release from the Ministry of Communication website;

This agreement transfers all customers, assets and agreed liabilities of AirtelTigo to the Government of Ghana. We consider this a positive step as it adds to the growing portfolio of digital infrastructure assets being utilised by the government.

Government will operate this national asset in the best interest of the nation, the company, telecommunications industry, and ensure the protection of the interests of all employees, customers, contractors, suppliers, stakeholders and sustain the digital transformation of Ghana.

Excepts of the Press Release (Read Full Release)

Mrs. Ursula Owusu-Ekuful (MP), the Minister for Communications and Digitalisation who signed on behalf of the Government of Ghana said;

“We, consider this a positive step as it adds to the growing portfolio of digital infrastructure assets being utilised by the government.

Government would operate the national asset in the best interest of the nation, the company, telecommunications industry, and ensure the protection of the interests of all employees, customers, contractors, suppliers, stakeholders, and sustain the digital transformation of Ghana.

Mrs. Ursula Owusu-Ekuful (MP) – Minister for Communications and Digitalisation.

Background

Bharti Airtel in 2017, agreed to merge with Millicom’s Tigo in Ghana, to become the country’s second-largest mobile operator, AirtelTigo whose merger was approved by the National Communications Authority.

AirtelTigo served about 8.4 million subscribers and offers employment opportunities to about 10,000 people, both directly and indirectly.

Little History

Airtel Ghana >

Celtel International, a subsidiary of Zain (formerly named the MTC Group) in 2007, acquired 75 percent of Western Telesystems Ltd (Westel) from the Government of Ghana for $120 million. Westel at the time of take over by Celtel was the second national operator in Ghana with license to provide fixed and mobile (GSM) service. Celtel was aquired by the Zain Group which sold all its assets in Africa to Bharti Airtel in 2010. The Ghana Government, a shareholder of Airtel Ghana with a 25% stake through the Ghana Petroleum Corporation retain the shares before and after the merger with options for additional shares.

Tigo Ghana >

Millicom Ghana Limited, was the first mobile telecommunications company to operate in the country operating under the brand name, Mobitel, from where it transformed to Buzz GSM which later became Tigo.

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