Vodafone gets reduced stake in Ghana Telecom’s deal

Mergers, Acquisitions and Financial Results

A day after the Minority in Parliament raised issues over government's negotiations with Vodafone Plc UK, over the sale of 70% shares in Ghana Telecom (GT), government has announced that it had reached an agreement with the company, in a partnership deal for 50% shares in GT.

Contrary to the Minority's claim that Vodafone's offer was $960 million with stringent caveats, the Minister of Information and National Orientation, Stephen Asamoah-Boateng, says that in consideration of the agreement, GT's enterprise value is at approximately US$1.3 billion, which is subject to approval from Parliament.

He stressed that the Government of Ghana (GOG) still retains a 30% stake in GT, adding that government had further reached an understanding with Vodafone, to float the remaining 20% GT shares on the Ghana Stock Market, as soon as possible.

This was contained in a statement, issued and signed, by the Minister himself. According to him, the transaction would benefit Ghanaians, such that it will re-engineer GT to deliver a superior product, and service to Ghanaians in every part of the country, and also raise its (GTs) mobile market share, to provide competitive per minute call charge.

The Minority said it was concerned about the general lack of openness and fairness, with which government was conducting negotiations. It claimed that government had included the National Fibre Optic backbone, constructed at the cost of $100 million, with a loan from China, which has never been part of GT's assets, saying, "we demand to know why this has been included as part of GT's assets, as the second phase of this ICT infrastructure highway is yet to commence."

Ghanaian Chronicle