The National Communication Authority (NCA) has granted conditional 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.
Ghana government still owns the remaining 30%.
A statement issued by NCA said the approval follows concessions made by the Seller and representations made by the Buyer to the NCA.
It would be recalled that in January 2022, the NCA received an application from Vodafone Ghana for the transfer of 70% of its majority shares to Telecel Group.
NCA said it evaluated the application on various criteria accordance with due process and engaged both Vodafone Ghana and the Telecel
The regulator concluded that the request did not meet the regulatory threshold for approval to be granted.
According to the NCA, Telecel 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.
NCA said it 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 Vodafone and Telecel.
The regulator added that Telecel strengthened the overall governance and management team and made firm commitments towards meeting the regulatory requirements of the NCA.
“Based on the above, the NCA confirms that the revised proposal from the Buyer now meets the regulatory threshold and hence has granted a conditional approval for the transfer of shares to the Buyer including submission of strategies for employee retention,” it added.
The NCA therefore assured the general public and all stakeholders that it would continue to work with Vodafone Ghana and the Telecel to complete all outstanding regulatory requirements to ensure a smooth transition as well as continuity of service delivery and improved choice for consumers and competition within the industry
Vodafone purchased a 70% stake in the Ghana business in 2008 for $900 million from Ghana government.
The company has since invested an estimated $500 million into Vodafone Ghana, but it is currently one of the unprofitable telcos in the country, with an estimated debt of over ghs500 million.
Whereas NCA cited additional information from Telecel as the reason for the eventual approval, Techgh24 has learnt that Ghana’s choice to go for an IMF bailout could be one of the key reasons for the approval of the Vodafone-Telecel deal. Indeed, same reason has been cited for the recent GHS8.2 billion tax liability on MTN.
