Telecel-Vodafone Ghana acquisition deal awaits AG’s opinion for takeover process to proceed
The Telecel-Vodafone Ghana acquisition deal has received conditional approval from the National Communications Authority (NCA) but has been delayed pending the opinion of the Attorney-General before Telecel can take over Vodafone Ghana.
This acquisition deal has been a matter of debate for months, with claims that the deal did not meet regulatory requirements and that Telecel did not have the financial and technical capabilities to operate a company the size of Vodafone Ghana.
However, after Telecel resubmitted proof of their capability to run and grow Vodafone Ghana, the NCA granted them conditional approval.
Part of the conditions for approving the deal was for Telecel to pay 20% of Vodafone Ghana’s outstanding licensing fees, which is estimated to be between $8 million to $15 million. Although Telecel has been ready with the funds to settle the 20% being asked, procedural delays in securing the AG’s opinion on the deal is stalling the takeover process.
The delay has resulted in Telecel not being able to meet with Vodafone Ghana workers and tell them about their vision directly.
Telecel, an Africa-focused telecom company, has pledged to invest hundreds of millions of dollars to improve the network, expand rural connectivity, and innovate around the fintech and broadband sides of the business.
This investment is part of Telecel’s plan to expand its business and prepare the company for an initial public offering (IPO) in the next five years. The company has raised some $700 million from investors and banks for more acquisitions and expansions across the continent.
The acquisition deal has been a source of concern for some, with fears of potential job cuts under Telecel’s management. However, Nicolas Bourg, a co-owner and Director on the Board of the company, has assured Vodafone Ghana workers that there will be no job cuts as it is not the company’s style to lay off workers after an acquisition.
This assurance is a positive sign for the workers who have been uncertain about their future under Telecel’s management.
The Telecel-Vodafone Ghana acquisition deal has been a subject of debate for months, but with the NCA’s conditional approval, it seems like the deal is moving in the right direction. However, the delay in securing the AG’s opinion is stalling the takeover process.
Telecel has assured Ghanaians of its commitment to invest in the network, expand rural connectivity, and innovate around the fintech and broadband sides of the business.
The company has also raised some $700 million for more acquisitions and expansions across the continent, preparing for an IPO in the next five years. The assurance that there will be no job cuts under Telecel’s management is a positive sign for Vodafone Ghana workers.
The outcome of the AG’s opinion on the deal remains to be seen, and we will keep you updated as the story develops.
