Government is delighted to announce today that it has reached an agreement with Vodafone, the world’s leading mobile telecommunications group, in a partnership deal for 70% of its shares in Ghana Telecom.
In consideration of this agreement, Ghana Telecom’s enterprise value is approximately US$1.3billion plus a cash injection of US$500million, totalling US$1.8billion. The Government of Ghana still retains a 30% stake in the company, GT.
This transaction is subject to approval from Parliament.
The Benefits of this transaction to Ghanaians are:
· Re-engineer Ghana Telecom to deliver a superior product and services to Ghanaians in every corner of the country
· Raising GT’s mobile market share to provide competitive per minute call charges
· Efficient service to ensure uninterrupted service to the Ghanaian consumer.
· Injection of substantial investment into our economy
· Vodafone to leverage its experience in over 25 countries and Partner Networks in an additional 42 countries with over 260 million customers worldwide to provide the best service in telecommunication to Ghanaians
· Vodafone’s brand and successful customer propositions such as ultra-low cost handsets will accelerate Ghana Telecom’s growth
The Government of Ghana has also reached an understanding with Vodafone to float GT shares on to the Ghana Stock market as soon as possible.
Commenting on the transaction, Arun Sarin, CEO 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.”
HON. STEPHEN ASAMOAH-BOATENG (MP)
MINISTER
Posted: 04/07/08