Transfer of majority shares from Vodafone to Telecel Group: NCA gives conditional approval

The National Communications Authority(NCA) has granted conditional approval for the transfer of the 70% majority shares in Ghana Telecommunications Company Limited (Vodafone Ghana) held by Vodafone to Telecel Group.

This decision was taken pursuant to the Authority’s evaluation of the revised proposal from the Telecel Group.

In January 2022, the NCA did a review of an application from Vodafone Ghana for the transfer of 70% of its majority shares to Telecel in which it noted that the request did not meet the regulatory threshold for the grant of the approval.

In a statement, the NCA notes that subsequent to this, the buyer(Telecel)’ resubmitted a revised financial and technical proposal in December 2022 which demonstrated the needed capital investment to extend the deployment of 4G and launch innovative Fintech solutions.'

The NCA thus found the above as providing more clarity and certainty in terms of the funding required for the acquisition and the commitments from both parties.

In addition, it notes that Telecel has strengthened the overall governance and management team and made firm commitments toward meeting the NCA’s regulatory requirements.

Per the above, the Authority has thus confirmed ‘that the revised proposal from the Buyer now meets the regulatory threshold and hence has granted a conditional approval for the transfer of shares to the Buyer including submission of strategies for employee retention.”

The NCA is therefore assuring the ‘general public and all stakeholders that it would continue to work with Vodafone Ghana and the Buyer to complete all outstanding regulatory requirements to ensure a smooth transition as well as continuity of service delivery and improved choice for consumers and competition within the industry.”