The board of directors of Canadian multinational, Rektron Group Incorporated has asked the management of the company to pull the brakes on their pursuit of AT Ghana until further notice.
In a response to questions from Techfocus24, Co-Founder of Rektron, Sanjeev Tolia said “I have been told by my Board not to chase/pursue it [AT Ghana].”
This comes just hours after Rektron had submitted to KPMG, the proof of funds covering the $150 million it offered for 60% stake in AT Ghana.
Rektron had earlier said that it suspected “possible sabotage” of its interest in AT Ghana, after reading the news of government’s steps to merge AT Ghana and Telecel Ghana, even though government had commissioned KPMG to do due diligence on Rektron for the same deal.
Sanjeev Tolia told Techfocus24 that at the time of the announcement, KPMG had completed the due diligence and was only waiting for Rektron to submit proof of funds. Subsequently Rektron summited the proof of funds, but now the company’s Board has asked management suspend the pursuit of AT Ghana.
He however noted that Rektron is still interested in AT Ghana, and if government of Ghana approaches them soon, they might be willing to re-engage.
”We simply wanted to reaffirm our interest but we were clear that we will not obstruct the AT Ghana/Telecel merger and from our perspective, if the government approaches us soon, we will engage but if it drags on we wish them well and we will move on,” he stated.
But to show that they have not completely abandoned their interest in AT Ghana, Sanjeev Tolia said Rektron has also written formally to the Minister Communications, Digital Technology and Innovations, Sam George to reaffirm their interest and they are waiting for his response.
Meanwhile, some industry watchers are not enthused by Rektron’s offer of $150 million for majority stake in AT Ghana, given that AT’s current debt is in the region of $180 million. The Minister has also said AT would need about $600 million capital injection over a period, to get back on its feet.
Some other industry watchers are worried about the way Rektron had gone ahead of itself and made media announcements about the whom deal, even though the deal is not yet closed.
Rektron’s Readiness
But as things stand now, Rektron has tabled an offer of US$150 million for the 60% equity stake in AT Ghana, and Sanjeev Tolia said Rektron’s extensive analysis and diligence confirm that the stated amount is more than sufficient to take AT Ghana into its next stage of growth.
On the issue of the need for US$600 million capital injection, Sanjeev Tolia said “The figure of US$ 600 million that has been circulated is, in our professional view, not required upfront. Rather, such a number—if ever necessary—would only materialise in a phased manner over 3–4 years, as the business scales and network upgrades are sequenced.”
He noted that even though Rektron is an infrastructure group, the entire management team are all ex–Wall Street bankers with deep restructuring, turnaround, and capital markets experience.
According to him, Rektron is a publicly listed company, and therefore has the ability to access global capital markets and raise substantially more than US$600 million if it is justified by the business case, backed by a strong management team, and underpinned by its balance sheet and credibility
Debt overhang and turnaround approach
Sanjeev Tolia said he had personally held detailed discussions with AT Ghana’s management and, indirectly, with several of AT’s creditors, saying that the mood was one of optimism and relief at the prospect of Rektron’s entry, as it offered a credible path to a restructuring solution.
From experience, he said, creditor negotiations are best framed around the choice between zero recovery or structured recovery. With Rektron’s ability to raise fresh equity, “we can credibly propose partial repayment alongside long-term restructuring of the balance. In my experience, lenders and counterparties are pragmatic when they see recovery prospects anchored in a new equity sponsor.”
Network, billing, and 4G/5G readiness
The Rektron Co-Founder said the company is proposing a significant fresh equity injection not only to clear and restructure debt but also to fund a new billing system and modern network infrastructure.
This, he said, includes creating a buffer for working capital and allocating an aggressive marketing budget to rebrand AT Ghana as a revitalised challenger.
“Our timeline is ambitious but realistic: within 18–24 months of closing, AT Ghana would be fully prepared for a 4G launch, with a clear pathway to 5G once spectrum is allocated.”
He said Rektron offers not just capital, but also global expertise, credibility, and the flexibility to raise additional funds when justified, adding hat its approach is disciplined yet ambitious.
Dealing with government
Sanjeev Tolia said Rektron is a seasoned entity which understands the complexities in dealing with government and could sense some challenges in the manner in which the Communications Ministry has handled the matter so far.
“We are certainly interested in AT, but not desperate and have no intention of embroidering ourselves in some long-term litigation. We will go through the processes and play away and watch game,” he stated.
