Telecel Group to take over Vodafone Ghana shares pending regulatory approval
Last week, news broke about Vodafone Group’s intention to exit Ghana’s telecom market to enable the service provider to re-focus on its key markets. According to the report, the British telecommunication giant has agreed to offload 70 percent of its stake in Ghana’s operation to Africa-focused telecom company, Telecel Group, subject to regulatory approval by the Government of Ghana through the Ministry of Communications.
About the deal
Speaking to industry experts over the weekend, the deal, when successfully approved, will still have the Government of Ghana maintaining its 30 percent stake in the business.
It was also revealed that the transaction has been fully financed by Telecel.
A potential project of the sale of Towers could happen in the future to additionally develop the infrastructure of the company, as part of a bigger plan for infrastructure sharing to help commercial competitiveness in Ghana.
It is expected that Telecel Group will inject the much-needed investment into Vodafone’s operations (sources estimate that Telecel has provisioned an investment of 500 million USD), to service the service provider’s debt while providing CAPEX to support the technology development and innovation.
This would be for both mobile telephone and Fixed Broadband (FBB) services with an improved customer experience at the right price point. Network availability and reliability are important to seamless service, and the investment to be provided by Telecel Group would support the network infrastructure and architecture for existing and new Vodafone Ghana customers, including consumers, corporates, government, and SMEs.
About the company taking over from Vodafone, Telecel
According to its website, Telecel is an Africa-focused telecommunication service provider and leader in the transformation of digital services.
It prides itself as a market disruptor with a wealth of experience from shareholders who have impacted the global retail industry and are poised to apply the same skills to impact positively on the continent’s telecom market. Not to mention that according to sources, Telecel, in general, is close to large groups like Orange, Etisalat, Convergence Partners, Digital 9, and others of the same tier, and they sometimes work in partnership with them.
The Telecel Group operates in four different business lines within the telecom and technology industry. These include Telecel Mobile, which owns and operates several mobile operators in Africa and Europe.
Telecel Global Services provides wholesale, enterprise, and digital security services to telecom operators and enterprises worldwide, while Telecel Play is a digital platform that is digitizing mobile users’ experience.
The fourth in the business line, Africa Startup Initiative Program, supports innovative start-ups in Africa and offers them funding and guidance to the scale of which Ghanian startups have been participating and benefiting, according to the latest news on the subject published recently in the media.
The Telecel Board is made up of experts in Telecom, Finance, and Digital services, with a large experience in leading positions in major companies, such as MTN, Vodafone, Orange, Google, and others; the chairman who is also the main shareholder comes from the Mulliez family, highly regarded in Europe as being the Rothchild’s of France.