Canadian multinational, Rektron Group Incorporated says it has submitted the proof of funding covering the $150 million it offered for 60% stake in AT Ghana to Ghana government’s transaction advisor, KPMG.
Rektron had earlier told Techfocus24 that it had submitted every document KPMG requested for, as part of the due diligence process, except the proof of funds. While they were yet preparing to submit the proof of funds, they read in the news that government of Ghana, which is the 100% share holder in AT Ghana, was pursuing a merger arrangement with Telecel Ghana.
Co-Founder of Rektron, Sanjeev Tolia said the timing of the announcement of the AT-Telecel arrangement smacks off a “possible sabotage” of Rektron interest in AT Ghana, because they are confident that KPMG did not find anything untoward about Rektron after subjecting it to a thorough due diligence process.
But in a brief notice to Techfocus24, Rektron said they have finally submitted the proof of funds to KPMG and they believe KPMG is satisfied so they are waiting for the government of Ghana on the way forward.
Rektron also noted earlier that they have written to the Minister Communications, Digital Technology and Innovations, Sam George and the Chief of Staff, Julius Debrah to reaffirm their commitment to rescuing AT Ghana from collapse.
Meanwhile, the Minister has also appointed KPMG as transaction advisors in the said AT-Telecel arrangement. Even though he says the arrangement is neither a merger nor an acquisition, some stakeholders have confirmed that the process started long before now and it is nearing completion.
AT Ghana’s estimated liability is in the region of $180 million to $200 million, and the Minister says the company would need about $600 million capital injection to get back on its feet.
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, which can’t even pay off the debt of AT Ghana. But 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 as writing a letter to the minister and the chief of staff and play away and watch game,” he stated.
