Ghana’s National Communications Authority (NCA) gave Vodafone Group the green light to sell its majority 70% stake in its Ghana unit to Telecom Group, a move that progresses the European operator’s divestment strategy to focus on core markets.
Vodafone and Telecel submitted their proposed sale in January 2022 which “did not meet the regulatory threshold for approval” at the time to be granted, the NCA said in a statement.
Telecel resubmitted a revised financial and technical proposal in December which fulfilled the demand for proof of ability to invest in the expansion of 4G networks and launch fintech solutions.
The proposal also “provided more clarity and certainty” in detailing the funding needed for the shares buy and other firm commitments from Vodafone and Telecel, which were not detailed. The NCA also detailed Telecel had “strengthened the overall governance and management team”
“The NCA confirms 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,” said the regulator.