Attorney General approves Telecel’s acquisition of Vodafone
The Attorney General has given clearance for the transfer of 70% majority shares in Vodafone Ghana to Telecel Group, according to reports by local media outlets.
This development is seen as the final hurdle to complete the transfer of shares and is expected to be approved by the company’s board at their next meeting.
Last year, Vodafone Ghana applied to the National Communications Authority (NCA) to transfer its majority shares to Telecel, but it failed to meet regulatory requirements. However, after resubmitting a revised proposal, the NCA gave conditional approval for the transfer of shares.
The Finance Ministry had earlier requested a review of all relevant transaction documents in order to carry out due diligence for the transaction and provide legal advice.
The Attorney General reviewed the documents and found that they met all the necessary conditions per the Companies Act, Regulations, and Shareholders’ Agreement.
In a letter cited by norvanreports from the office of the Attorney-General and Ministry of Justice to the Minister of Finance on the deal, the AG advised that “the transaction may proceed”. This news comes as a relief to stakeholders involved in the deal, who had been waiting for clearance from the Attorney General’s office to proceed.
Despite the news causing concern among Vodafone staff over their job security, the Managing Partner at Telecel Group, Nicholas Bourg, has assured them that there is no cause for concern.
Speaking in an interview, Bourg stated that the company has made firm commitments towards meeting the regulatory requirements of the NCA, and has strengthened the overall governance and management team.
The deal is expected to bring a host of benefits to the Ghanaian telecommunications sector. The buyer, Telecel Group, has demonstrated the needed capital investment to extend the deployment of 4G and launch innovative Fintech solutions. This could potentially lead to increased competition in the market, which would benefit consumers.
The transfer of shares from Vodafone Ghana to Telecel is also expected to create jobs and increase economic activity in the country.
However, the deal has been met with some resistance from local unions, who have raised concerns about the impact on the job security of Vodafone Ghana employees.
Despite these concerns, the transfer of shares is expected to proceed, subject to the filing of a staff retention strategy.
The deal is expected to be closely watched by stakeholders in the Ghanaian telecommunications sector, as it could pave the way for further investment and competition in the market.
