GHANA WILL PAY USD50 MILLION TO BUY OUT TELEKOM MALAYSIA

Mergers, Acquisitions and Financial Results

According to a Reuters report, Telekom Malaysia announced that the Ghanaian government agreed to pay the Telekom USD50 million for its shareholding. "The government of Ghana has admitted it will soon have to pay USD50 million of its foreign currency reserves to satisfy its liability in respect of Telekom Malaysia’s investment in Ghana Telecom," Telekom Malaysia said.

Telekom Malaysia said it filed an international arbitration claim to force the Ghanaian government to repurchase Telekom’s share of Ghana Telecom and pay it an additional USD124 million.

Telekom has attempted to sell its stake in Ghana’s largest telecom operator to the Ghanaian government after its management contract expired. Telekom initially paid USD38 million for the stake in 1997. Telekom’s claim was filed with the arbitration court in The Hague in October 2003 and is expected to be resolved by July 2004.

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