The Attorney General has approved the transaction after reviewing documents related to the transfer of shares in the sale of Vodafone Ghana to Telecel.
The Finance Ministry had previously written to the Attorney General requesting a review of all relevant transaction documents pertaining to the transfer of 70 percent majority shares in Ghana Telecommunications Company Limited (Vodafone Ghana) held by Vodafone International Holdings B.V. to Telecel Group in order to conduct due diligence and provide legal advice on the transaction.
Following the review, the Attorney General stated that the documents provided met all of the conditions set out in Section 98 of the Companies Act, 2019 (Act 992), Regulations 34 of the Regulations, and Articles 14 and 15 of the Shareholders’ Agreement.
The Attorney-office General’s and the Ministry of Justice advised the Minister of Finance in a letter cited by Citi Business News that “the transaction may proceed…”
This was the final lap before the transfer of shares was approved by the company’s board.
With this completed, Vodafone Ghana insiders say the board will likely meet next week to approve the transaction.
Last year, Vodafone Ghana applied to the NCA to transfer 70% of its majority stake to Telecel, but the application was denied because it did not meet regulatory requirements.
The Authority gave clearance earlier this year, but it was conditional on both parties making concessions, and it was issued in response to the evaluation of the Telecel Group’s revised proposal.
The statement added, “Following the NCA’s decision, the buyer resubmitted a revised financial and technical proposal in December 2022 which demonstrated the needed capital investment to extend the deployment of 4G and launch innovative Fintech solutions,” the statement read in part.
“The NCA found that the revised proposal provided more clarity and certainty in terms of the funding required for the acquisition and commitments from both the Seller and buyer.
In addition, the buyer has strengthened the overall governance and management team, and made firm commitments toward meeting the regulatory requirements of the NCA,” it further indicated.
The NCA concluded that the Purchaser’s revised plan now meets regulatory requirements.
As a result, it granted conditional approval for the buyer’s share transfer, subject to the submission of a staff retention strategy.
However, since the news of the deal broke, there has been an uneasy calm among Vodafone employees regarding their job security. In an exclusive interview with Citi Business News, Telecel Group Managing Partner Nicholas Bourg stated that there was no cause for concern.
