The National Communications Authority (NCA) says it has granted conditional approval for the transfer of 70 percent of government’s shares in Ghana Telecommunications Company Limited held by Vodafone Ghana to Telecel Group.
The development comes after government had earlier received and later rejected an application by Vodafone Ghana to transfer its majority share of 70 percent from the seller [Vodafone International Holdings B.V] to the Buyer [Telecel].
A statement issued by the NCA explained that in accordance with due process, the Authority had evaluated the application on various criteria and engaged with Vodafone Ghana and Buyer.
It noted the NCA however concluded that the earlier request did not meet the regulatory threshold for approval.
“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 statement explained.
“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,” it added.
It further pointed out 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 the submission of strategies for employee retention.
Meanwhile, a Bloomberg report in July 2022 noted that Telecel plans to help fund the acquisition of the company by offloading its mobile towers.
Vodafone is also reported to have paid $900 million to the government of Ghana for a 70 percent stake in the company while the government maintains a 30 percent stake.