MTN targets Goldkey's 4G spectrum in exchange for shares

7 December 2018

Mergers, Acquisitions and Financial Results

Adom News has gathered that MTN is in talks with Goldkey Telecoms for a possible shares-for-spectrum deal.

MTN will be offering an undisclosed number of its shares in exchange for Goldkey's 4G spectrum in the 2600MHz band.

Sources indicate that the National Communications Authority (NCA), the industry regulator, had long given MTN and Goldkey the green light to kick-start talks towards the deal.

A former top official of the NCA had earlier confirmed in a letter that MTN's move on Goldkey "is part of MTN's 35 per cent localisation deal" following their acquisition of a 4G license in the 800MHz spectrum band in December 2015.

Goldkey is one of the three Broadband Wireless Access (BWA) license holders who paid US$6 million for the spectrum for 4G service.

But the 2600MHz spectrum slot they got has since remained redundant and all the deadlines for deployment have been missed

MTN was required by law to sell 35 per cent shares to Ghanaians within 13 months of acquiring the 4G spectrum license for $67.5 million.

It has since floated shares and reportedly sold an estimated 10 per cent in a very successful initial public offer (IPO) on the Ghana Stock Exchange.

In related news, stricken Ghanaian BWA player Surfline – which owes the government GHS37.3 million (USD7.7 million) in unpaid taxes – is said to be in talks with Vodafone Ghana regarding a tie-up similar to the MTN-Goldkey proposal, although this deal is rated as less likely to succeed.

Source: My Joy Online