The National Communications Authority (NCA) has granted provisional approval for the transfer of the 70% majority shares in Ghana Telecommunications Company Limited (Vodafone Ghana) to Telecel Group subject.
This is subject to concessions made by Vodafone and representations made by the Telecel Group to the NCA.
Vodafone International Holdings B.V held 70% shares of Vodafone Ghana.
In a statement, the NCA assured the public and all stakeholders that it would continue to work with Vodafone Ghana and Telecel 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.
It would be recalled that in January 2022, the NCA received an application from Vodafone Ghana for the transfer of 70% of its majority shares held by Vodafone to Telecel.
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, Telecel 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 Vodafone and Telecel.
In addition, Telecel has strengthened the overall governance and management team and made firm commitments towards meeting the regulatory requirements of the NCA.
Based on the above, the NCA confirmed that the revised proposal from Telecel now meets the regulatory threshold and, hence, has granted a conditional approval for the transfer of shares, including the submission of strategies for employee retention.
Source: Business Analyst