The National Communications Authority (NCA) has revealed that the sale of Vodafone Ghana to Telecel Group does not meet the regulatory threshold for approval.
The NCA, however, dismissed media reports that it was deliberately blocking the sale of Vodafone to Telecel describing the reports as false.
In a statement, the NCA stated that “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.
“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 added that the decision was only endeavoured to ensure compliance with the regulatory framework and international best practices.
Vodafone entered Ghana in 2008 when it paid the west African county’s government $900 million for 70% of Ghana Telecommunications Company. The government retains a 30% holding in the business.
Telecel plans to help fund the acquisition by later offloading the Ghana business’s mobile towers, according to people familiar with the matter, who asked not to be identified discussing confidential information.
Vodafone Plc agreed a sale of its operations in Ghana to Telecel Group, as the British telecommunications giant looks to refocus on key markets.
The London-listed company will sell its majority stake in Vodafone Ghana to Africa-focused Telecel, subject to certain conditions, a spokesperson for Vodafone said in an emailed statement.
Vodafone entered Ghana in 2008 when it paid the west African county’s government $900 million for 70% of Ghana Telecommunications Co. The government retains a 30% holding in the business.
Telecel plans to help fund the acquisition by later offloading the Ghana business’s mobile towers, according to people familiar with the matter, who asked not to be identified discussing confidential information.
A representative for Telecel confirmed the talks with Vodafone, but declined to comment further.
Nick Read, Vodafone’s chief executive officer, has been focusing the group on Europe and Africa as he streamlines a sprawling operation that once extended from its Newbury, England headquarters all the way to New Zealand.
In Africa, Vodafone has been steadily consolidating interests under its sub-Saharan subsidiary Vodacom Group Ltd., of which it owns 60.5%. Vodafone explored a sale of its Ghanaian business to Vodacom in early 2021 and, while that deal did not materialize, transfered a 55% holding in its Egyptian operations to the group later in the year.
Founded in 1986, Telecel operates in more than 30 countries and employs over 700 staff, according to its website. The company has a history of growth through acquisitions, having struck deals in Gibraltar, Liberia and Mauritania in recent years.