Ghana has given the final approval for the transfer of the 70 percent majority shares in Vodafone Ghana (Ghana Telecommunications Company Limited) held by Vodafone Group Plc to Telecel Group.
The approval for the sale was given after Telecel submitted a revised financial and technical proposal in December 2022.
The sector regulator, the National Communications Authority (NCA) had turned down an initial sale plan submitted by Vodafone Ghana early last year as it did not meet the required regulatory standards.
The NCA said that the revised proposal provided more clarity on funding required for the transaction and met the regulatory threshold.
Senior officials of Telecel say they intend to use the Vodafone Ghana acquisition as a launch pad to the capital markets to raise funds for its operations in Ghana.
Telecel has, therefore, indicated that it plans to issue an Initial Public Offer (IPO) once the acquisition goes through all regulatory approvals from the government for it to acquire majority stake in Vodafone Ghana.
The $500 million all-cash deal is part of Telecel’s expansion strategy into Africa.
Announcement of final approval
In a release Tuesday morning (Feb 21, 2023), the National Communications Authority (NCA) explained that the final approval follows “satisfaction of conditions outlined in the conditional approval of the transfer of the shares, including the agreement of the Government of Ghana, who remains the 30% minority shareholder.”
It will be recalled that the NCA had announced on January 16, 2023, that pursuant to the evaluation of the revised proposal from the Telecel Group, it had granted conditional approval for the transfer of the 70 percent majority shares in Vodafone Ghana held by Vodafone Group Plc (the Seller) to Telecel Group (the Buyer) subject to concessions made by the Seller and representations made by the Buyer to the NCA.
It said the regulator will continue to guide the takeover process in accordance with the existing license conditions of Vodafone Ghana, while ensuring that the interests of consumers are held paramount.
The NCA further assures the public that due process will be followed in the interest of all parties.