Ministry Of Communication States That Telecel Group “Not Suitable” For Vodafone TakeoverPrecious Eshun
In a sequence of circumstances, the Telecel Group was considered “unsuitable” for the takeover of Vodafone Ghana, according to the Minister of Communication and Digitization, Ursula Owusu.
According to the Minister, Telecel Group approached the government early this year about buying out Vodafone Group’s 70% interest.
According to a statement released by Telecel, it has signed a Sale and Purchase Arrangement (SPA) with Vodafone to purchase a 70% ownership in its Ghanaian subsidiary. The agreement is still subject to regulatory clearance, however.
“We have received their responses which have not granted the approvals yet and Telecel is willing to re-engage soon after putting together the necessary clarifications.” the statement reads.
“Telecel Group and Vodafone have been in touch with Ghana’s Ministry for Communications, the Bank of Ghana, and the National Communications Authority, to finalise all the regulatory requirements related to this transaction”, it pointed out.
The Minister had said that after doing due diligence on Telecel Group, it had come to the conclusion that it lacked the resources and capability to manage Vodafone following the merger.
The Telecel company intended to resume communication with the government and complete the deal. They highlighted that their company strategy is distinct and that its strength lies in using disruptive innovation to overcome obstacles.
They said that Ghana’s economic environment suited Telecel Group’s business models and served as a major enabler for the company to conclude a deal with Vodafone.