Ghana has given final approval to the transfer of Vodafone Group Plc’s 70% stake in Vodafone Ghana (Ghana Telecommunications Company Limited) to Telecel Group.
Telecel received approval for the sale after submitting a revised financial and technical proposal in December 2022.
The National Communications Authority (NCA), the sector regulator, had rejected an initial sale plan submitted by Vodafone Ghana early last year because it did not meet the required regulatory standards.
According to the NCA, the revised proposal provided more clarity on the transaction’s funding requirements and met the regulatory threshold.
Telecel executives say they plan to use the Vodafone Ghana acquisition as a springboard into the capital markets to raise funds for their operations in Ghana.
As a result, Telecel has stated that it intends to issue an Initial Public Offering (IPO) once the acquisition of a majority stake in Vodafone Ghana has received all regulatory approvals from the government.
The $500 million all-cash transaction is part of Telecel’s African expansion strategy.
Final approval is expected to be announced soon.
The National Communications Authority (NCA) explained in a release Tuesday morning (Feb 21, 2023) 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.”
The NCA previously announced on January 16, 2023, that following an evaluation of the revised Telecel Group proposal, 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 stated that the regulator will continue to guide the takeover process in accordance with Vodafone Ghana’s existing license conditions while ensuring that consumer interests are prioritized.
In addition, the NCA assures the public that due process will be followed in the best interests of all parties.