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Vodafone's request to transfer majority shares to Telecel fails.

Vodafone's request to transfer majority shares to Telecel fails.
Vodafone & Telecel Group

An application by the Vodafone Group to transfer the Telecel Group a 70% majority of the shares in Vodafone Ghana was rejected by the National Communications Authority (NCA).

The NCA said in a news statement released today that the application did not satisfy the legal requirements for approval.

"In January 2022, the NCA received an application for the transfer of 70% majority shares in Ghana Telecommunications Company Limited (Vodafone Ghana) from Vodafone International Holdings B.V. to the Telecel Group," the release said.

"In accordance with due process, the Authority evaluated the application on various criteria and engaged both Vodafone and Telecel Group. After a critical regulatory review and evaluation, the NCA concluded that the request did not meet the regulatory threshold for approval to be granted".


The NCA said the release was in response to media reports "purporting a block of the sale of Vodafone Ghana to the Telecel Group by the Ministry of Communications and Digitalisation (MoCD)".

According to a Bloomberg story from last week, the Vodafone Group plans to leave Ghana's cellular industry in order to concentrate on its core countries.

The British telecom firm has consented to sell Telecel Group, an African-focused telecom business, 70% of its investment in Ghana's operations, subject to regulatory permission from the Ghanaian government via the Ministry of Communications.

When it paid $900 million for a 70% interest in the Ghana Telecommunications Company, Vodafone entered the country in 2008.

"Telecel plans to help fund the acquisition by later offloading the Ghana business’ mobile towers, according to people familiar with the matter", the Bloomberg report said.

Vodafone has progressively consolidated its holdings in Africa via its sub-Saharan subsidiary, Vodacom Group Ltd., of which it controls 60.5%.

Early in 2021, Vodafone considered selling its Ghanaian businesses to Vodacom. While the transaction did not go through, later that year, Vodafone sold a 55% ownership stake in its Egyptian operations to the firm.

According to its website, Telecel was established in 1986 and now works in more than 30 countries with over 700 employees.

The business has a history of expanding via acquisitions, recently closing agreements in Mauritania, Liberia, and Gibraltar.

The full NCA press statement below:

Source: ghananews.hrforum.uk

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