Government grants Telecel conditional approval to acquire 70 per cent stake in Vodafone Ghana
The National Communication Authority (NCA) has granted conditional approval for the transfer of 70 per cent majority shares of Vodafone International Holdings B.V. Vodafone Ghana to Telecel Group.
A statement issued by NCA said the approval followed a revised financial and technical proposal submitted by Telecel resubmitted in December 2022, which demonstrated the needed capital investment to extend the deployment of 4G and launch innovative Fintech solutions.
In January 2022, the NCA received an application from Vodafone Ghana for the transfer of 70 per cent of its majority shares to Telecel Group, but the regulator after evaluation rejected the request for failing to meet the regulatory threshold for approval to be granted.
The 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 Vodafone and Telecel.
NCA said 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 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 Ghana began operations in 2008 when its parent company paid the government $900 million for 70 per cent of the then Ghana Telecom Company Limited.
The government still maintained 30 per cent stake in the company.