Telecel to pay Vodafone Ghana’s outstanding $8m-$15m licensing fees to gain NCA approval for acquisition
Telecoms company Telecel Group has gained conditional approval from the National Communications Authority (NCA) to purchase a 70% majority stake in Vodafone Ghana from Vodafone Group.
Reports indicate that the NCA stipulated that Telecel must pay 20% of Vodafone Ghana’s outstanding licensing fees – thought to be between $8m and $15m – before the acquisition can be completed.
The government had earlier agreed to pay at least one of Vodafone Ghana’s licensing fees – between $18m and $25m – but has failed to honour that commitment.
Telecel Group, an Africa-focused telecoms firm, has said it plans to invest hundreds of millions of dollars into Vodafone Ghana, boosting network coverage, expanding rural connectivity and developing fintech and broadband services.
Co-owner and CEO Moh Damush has also promised that the company has no plans to cut jobs after the acquisition, but changes to top management could be forthcoming.
While Telecel Group’s acquisition of Vodafone Ghana is set to be a significant boost to the company, its plans for an IPO in the next five years are further indication of its ambitions for expansion across the African continent.
