The National Communications Authority (NCA) has given consent to Vodafone for the transfer of its 70% majority shares to Telecel group.
The NCA in its press release disclosed that the approval is subject to concessions made by Vodafone and representations made to the NCA by the Telecel group. “This is pursuant to the evaluation of the revised proposal from the Telecel Group,” it added.
“The National Communications Authority (NCA) is pleased to announce that pursuant to the evaluation of the revised proposal from the Telecel Group, it has granted approval for the transfer of the 70% majority shares in Ghana Telecommunications Company Limited (Vodafone Ghana) held by Vodafone International Holdings B.V. (the Seller) to Telecel Group (the Buyer) subject to concessions made by the Seller and representations made by the Buyer to the NCA.”
National Communication Authority
Approval Of Resubmitted Document
The National Communication Authority in January last year received an application from Vodafone Ghana for the transfer of 70% of its majority shares held by its mother company to Telecel.
In accordance with due process, the Authority evaluated the application on various criteria and engaged both Vodafone Ghana and Telecel group. The NCA concluded that the request did not meet the regulatory threshold for approval to be granted, hence purporting a block of the sale of Vodafone Ghana to the Telecel Group.
The conditional approval was given after the NCA found that the revised proposal submitted provided detailed explanations, clarity and certainty in relation to the funding required for the acquisition and commitment from both the seller and buyer.
“Following the decision, Vodafone International Holdings B.V resubmitted a revised financial and technical proposal in December 2022 which demonstrated the needed capital investment to extend the deployment of 4G and launch innovative Fintech solutions.
“The NCA found that the revised proposal provided more clarity and certainty in terms of the funding required for the acquisition and the commitments from both International Holdings B.V and Telecel group. In addition, the Telecel group has strengthened the overall governance and management team and made firm commitments towards meeting the regulatory requirements of the NCA.”
National Communication Authority
Based on the above, the National Communication Authority has now confirmed that the revised proposal from Vodafone International Holdings B.V now meets the regulatory threshold and hence has granted conditional approval for the transfer of shares to the Telecel group including the submission of strategies for employee retention.
According to Bloomberg, Vodafone Group had agreed the sale of its operations in Ghana to Telecel Group as part of its strategy to refocus on key markets.
The NCA assured the general public and all stakeholders that it would continue to work with Vodafone Ghana and the Telecel group to complete all outstanding regulatory requirements to ensure a smooth transition, continuity of service delivery, as well as improved choice for consumers and competition within the industry.
Vodafone Ghana shares are held by Vodafone International Holdings B.V.
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