Ras Mubarak, a Member of Parliament’s Communications Committee, is requesting for a detailed release from the government on its decision to engage in the 100% acquisition of shares in AirtelTigo.
Speaking in an interview, Mr. Mubarak indicated that, it behooves on the government to be transparent with its citizens on the merits of the acquisition.
“I find it unacceptable that my own government will enter into such an agreement – to use the tax payers’ money to acquire 100% shares in AirtelTigo. They have not had the courtesy to inform the good people of Ghana what this is all about. I expect nothing but full disclosure of the details of this transaction. If you look at the liabilities of AirtelTigo at the moment, it is almost a billion.”
“Why would the government want to use a billion [for such purpose]? If the government has that amount of money to offset the liabilities of AirtelTigo, would it not have been more prudent to use a portion of that to honour its obligations? To have entered into an agreement of this magnitude clearly smacks of something fishy.”
Government on October 28, 2020 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, 28 October 2020, 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”.
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, October 27, 2020, which also cleared consolidated financial results for July-September. Airtel Africa Plc announced its standalone quarterly results last week.
