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Vodafone Ghana: Takeover news spark redundancy fears.

Vodafone Ghana: Takeover news spark redundancy fears.
Vodafone Ghana

Following the Group's decision to sell its 70% interest to Telecel Group, there is an unsettling stillness at Vodafone Ghana.

A number of corporate employees are worried about possible job losses if the purchase is ultimately completed and a new shareholder takes over the operation.

The government promised to safeguard employees of Ghana Telecom when Vodafone Group originally took over, but that was not to be as hundreds of employees were thrown off, although with generous severance compensation.

Graphic Business has learned that while it is still early, the concerns of the employees who talked with the newspaper under the condition of anonymity continue, as they wait for a formal notification from the government or their company about the next steps.

The business has declined to respond since the news first leaked last Friday.

The SIM re-registration drama, which took centre stage over the weekend amid worries that the deadline would be respected and those who had not registered would lose their numbers, has also overshadowed the progress.

Attempts to get in touch with government sources for comment have also been unsuccessful since they keep a tight lid on the situation.

Under normal circumstances, the Vodafone Group is required to provide the government the first right of refusal prior to going public under the terms of the transaction that offloaded the largest stake of the firm.

According to information obtained by Graphic Business monitored by GHANA News ONLINE, the government was aware of the decision but has not formally informed Vodafone Group of its stance about the company's future course of action.

Vodafone losing subscribers

Since the beginning of the year, the company's subscriber base has been slipping behind that of its rivals.

For instance, the number of the company's mobile voice users fell from 7.7 million at the end of March to 7.5 million in April, a 2.44 percent reduction.

Despite maintaining its ranking as the second-largest telecom in the nation with 18.26% of the market as of the end of April, there are indications that the firm is experiencing significant financial difficulties.

For instance, there are rumours that the company's CSR arm, the Vodafone Foundation, has dramatically reduced its funding.

No investment

Graphic Business has also learned that the Group has declined to contribute financially to the firm's operations since the company's minority stakeholder, the Ghanaian government, which owns 30% of the company, has done the same since the acquisition.

Source: ghananews.hrforum.uk

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