Vodafone announced today that it has agreed to acquire a 70% stake in Ghana Telecommunications Company Limited (“Ghana Telecom”), a leading telecommunications operator in Ghana, from the Government of Ghana for a total consideration of US$900 million (£452 million), on a debt-free, cash-free basis, implying a total enterprise value for Ghana Telecom of approximately US$1.3 billion (£646 million). The Government of Ghana will retain a 30% stake in the company.
Commenting on the transaction, Arun Sarin, Chief Executive of Vodafone,
said:
“Ghana is one of the most attractive markets in Africa with mobile subscribers growing at more than 55% p.a. and mobile penetration around 35%. Our extensive operating experience together with our
portfolio of products and services position us well to deliver a superior mobile experience to Ghanaian customers and significantly improve financial performance. I expect that our investment will
generate substantial benefits for Vodafone and for the Ghanaian economy and we are delighted that we will be working in partnership with the Government of Ghana.”
The principal benefits to Vodafone are:
o Exposure to the attractive and growing Ghanaian telecommunications market
o total population of 24 million with more than 50% under the age of 25
o real GDP growth of 6.3% in 2007, contained inflation and a stable political background
o low mobile penetration at c.35%, with 2.7 million subscribers added in 2007
o significant additional growth prospects from recent oil field discoveries
As part of the transaction price, it has been agreed that the Government of Ghana’s fibre network assets will be transferred to Ghana Telecom.
The transaction remains subject to certain closing conditions, including approval from the Ghanaian Parliament. Vodafone expects the transaction to close in the third quarter of calendar year 2008.
ITNewsAfrica.com
