Telecel acquires 70% stake of Vodafone Ghana
Vodafone acquired 70% stake in Ghana Telecommunications Company Limited for $900 million (454 million pounds) for a 70 percent stake in Ghana Telecom, the country’s third largest mobile phone operator in 2008.
Vodafone group by revenue, said the government of Ghana would retain a 30 percent stake in Ghana Telecom, which has an enterprise value of around $1.3 billion.
“Ghana is one of the most attractive markets in Africa with mobile subscribers growing at more than 55 percent (per annum) and mobile penetration around 35 percent,”Vodafone Chief Executive Arun Sarin said in a statement.
The Vodafone acquisition by publicly available data shows an unsubstantive first line impact of the acquisition against the position of Onetouch and Ghana Telecom before the acquisition. This business sense may have informed the transfer to Telecel Group.
Telecel Group was founded in 1986 by the late Rwandan-born entrepreneur Miko Rwayitare, the company went through several stages until its rebranding in 2017. The group has presence in over 15 African countries across telecoms, e-commerce, and startup initiatives. The acquisition move tips Telecel’s telecom expansion into Western Africa after actively operating in countries like Guinea, Gabon, Equatorial Guinea, Central African Republic, DR Congo, and Chad.
The move come at a similar situation as the acquisition environment of Vodafone Group Plc. An economical trying time for the country and Vodafone Ghana as a whole.
Nod from Ghana NCA
On the 16th of January, 2023, The National Communications Authority (NCA) of the country announced their pleasure to announce that pursuant to the evaluation of the revised proposal from Telecel Group, the authority 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.
The statement details that the sale is subject to concessions made by Telecel Group. What these concessions are would determine the affirmation of the approval or reversal perhaps.
By the above, Telecel Group has gain approval from the communications authority of Ghana.
Completion of Acquisition
As of 21st of February, 2023 in Accra. Vodafone Group Plc has completed the transfer of its 70% majority shares in Vodafone Ghana (Ghana Telecommunications Company Limited – GTCL(a national telecommunication carrier)), to Telecel Group after successfully obtaining all the necessary regulatory approvals, including the agreement of the Government of Ghana, with their retained share of 30% from the initial offload of 70% to Vodafone Group PLC in 2008 which yielded no particular results technically (though some gains made in some none technical field). The completion of the agreement to acquire Vodafone Ghana by Telecel Group presents an opportunity for further innovation and quality service delivery.
Operations of Vodafone Ghana and the three other subsidiaries; National Communication Backbone Company Limited, Vodafone Ghana Mobile Financial Services Limited (Vodafone Cash), and Vodafone Ghana Foundation will continue operations uninterrupted while embracing exciting new possibilities.Telecel Group
More Information ℹ
- Vodafone Group Plc
- Telecel Group
- Vodafone Ghana States as operated by Vodafone Group Plc at the time of Article
- Conditional Approval for the Transfer of Majority Shares in Ghana Telecommunications Company Limited (Vodafone Ghana) to Telecel Group
- NCA approves the Transfer of Majority Shares in Ghana Telecommunications Company Limited (Vodafone Ghana) to Telecel Group
- Vodafone acquires 70 percent stake in Ghana Telecom
- Telecel Group Completes Agreement to Acquire Majority Shares in Vodafone Ghana