Vodafone Ghana Telecel
Ghana has granted Vodafone International Holdings (VOD.L) appro
val to sell its 70% stake in Vodafone Ghana to Telecel Group, the country’s telecoms regulator said on Monday.
The National Communications Authority (NCA) approved the sale after Telecel submitted a revised financial and technical proposal in December. The NCA had turned down an initial sale plan submitted by Vodafone Ghana early last year as it did not meet required regulatory standards.
The National Communications Authority (NCA) says it has granted conditional approval for the transfer of 70 percent of government’s shares in Ghana Telecommunications Company Limited held by Vodafone Ghana to Telecel Group.
The development comes after government had earlier received and later rejected an application by Vodafone Ghana to transfer its majority share of 70 percent from the seller [Vodafone International Holdings B.V] to the Buyer [Telecel].
According to the Authority, this is pursuant to the evaluation of the revised proposal from the Telecel Group.
The Vodafone Ghana shares are held by Vodafone International Holdings B.V.
In January last year, the NCA received an application from Vodafone Ghana for the transfer of 70% of its majority shares held by its mother company to Telecel.
A notice posted on the regulator’s website today (January 16), said “it would be recalled that in January 2022, the NCA received an application from Vodafone Ghana for the transfer of 70 per cent of its majority shares held by the Seller to the Buyer.
It said in accordance with due process, the NCA evaluated the application on various criteria and engaged both Vodafone Ghana and Telecel.
“The NCA concluded that the request did not meet the regulatory threshold for approval to be granted.
“Following the NCA’s decision, the Buyer 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 notice said.
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 as well as continuity of service delivery and improved choice for consumers and competition within the industry.