Plans to transfer AirtelTigo shares to the government in the final stages

Business news for Friday, October 30, 2020

Source: Ghana Times

2020-10-30

The Government of Ghana and AirtelTigo have started the final stages of discussions on the transfer of AirtelTigo shares to the government together with all of its agreed clients, assets and liabilities.

The transaction would be concluded with the execution of definitive agreements shortly after which the government would temporarily operate the asset in the best interest of the nation.

The move would also ensure the protection of the interests of all employees, customers and stakeholders, while continuing the digital transformation in Ghana.

Given the multiplier impact that the telecommunications sector has on the economy and its various related industries, the Government of Ghana entered into this agreement for the purpose of protecting the jobs of thousands of Ghanaians.

Therefore, it is vitally important that the telecommunications sector remains healthy, dynamic, vibrant and, most importantly, competitive.

Bharti Airtel in 2017 merged with Tigo of Millicom in Ghana to become the second largest mobile operator in the country, AirtelTigo, with the approval of the National Communications Authority.

AirtelTigo serves around 5.1 million subscribers and offers direct and indirect employment opportunities to almost 10,000 people.

Celtel International acquired 75% of Western Telesystems Ltd (Westel) from the Government of Ghana for $ 120 million in 2007.

Celtel was later acquired by the Zain Group, which also sold all of its African assets to Bharti Airtel, in 2010.

The Government of Ghana remained a shareholder in Airtel Ghana with a 25 percent stake through Ghana National Petroleum Corporation, until the AirtelTigo merger, and retained the option to acquire additional shares after the merger.

Westel was at the time of acquisition by Celtel, the second national operator in Ghana and was licensed to provide fixed and mobile telecommunications (GSM) services.

Millicom Ghana Limited was the first mobile telecommunications company to operate in the country under the Mobitel brand before changing its brand to become Tigo.