The Government of Ghana has disclosed that the acquisition of the 100% shares of telecommunication company AirtelTigo, is aimed at protecting jobs of workers in the country.
A statement from government further maintains that, although the transaction is at its various stages, it will only “temporarily” operate the Telco Company to serve the interest of the country.
“The Government of Ghana through this transaction, will temporarily operate this national asset in the best interest of the nation, and ensure the protection of the interests of all employees, customers and stakeholders, and a continuation of the digital transformation in Ghana.
“Given the multiplier impact the telecommunications sector has on the economy and various related industries, the Government of Ghana has entered into this agreement to ensure that thousands of Ghanaian jobs are safeguarded”.
Bharti Airtel’s board on Wednesday cleared the sale of its Ghana joint venture AirtelTigo to the government in the African country and is taking an impairment charge of Rs184.1 crore for the transaction.
“The parties are in advance stages of discussions for the conclusion of the commercial agreement for the transfer of AirtelTigo on a going concern basis to the Government of Ghana,” Airtel said in a statement to the Bombay Stock Exchange on Wednesday.
Bharti Airtel Limited’s acquisition by Government
On Tuesday, October 27, 2020, the Sunil Mittal Company’s statement issued a statement that, Bharti Airtel Ltd will sell 100% shares of its Ghana business to the country’s government, which will acquire customers, assets and agreed liabilities.
It further indicated that, the Ghana government and AirtelTigo, the telco’s Ghana unit, are in advance stages of conclusion of the agreement for transfer of the latter as a going concern.
AirtelTigo is a joint venture between Airtel and Millicom International Cellular SA. India’s second largest telecom operator holds a non-controlling 49.95% share in AirtelTigo.
The transfer of shares was approved by Bharti Airtel’s board on Tuesday, which also cleared consolidated financial results for July-September. Airtel Africa Plc announced its standalone quarterly results last week.
Airtel Africa posted an 8.8% year-on-year drop in net profit to $88 million in the quarter ended September due to higher expenses. The company had reported a net profit of $57 million in the quarter ended June.
The telco’s revenue grew 14.3% year on year on a reported basis and 19.6% in constant currency, at $965 million, driven by customer base growth of 12%, both in Q2 FY21 and half-year ended September, and average revenue per user growth of 6.8% in constant currency in July-September.
In August, Airtel Networks Kenya Ltd, a subsidiary of Bharti Airtel’s Africa unit, called off the merger with Telkom Kenya Ltd citing challenges to secure regulatory approvals for the deal.
Airtel in February 2019 had said its Kenya unit agreed to acquire Telkom Kenya, the East African nation’s smallest telecom operator, in which the state still has a 40% shareholding, after a majority stake was sold in 2007.
Airtel Africa is the holding firm for Bharti Airtel’s operations in 14 countries, with Nigeria alone accounting for almost half of its earnings before interest, tax, depreciation and amortization.
