British Telecommunication giant, Vodafone has considered selling its business in Ghana’s stakes to Vodacom. Sources familiar with the issue have revealed that this step is to allow Vodafone reorganise and pay off debts.
Although plans regarding this move remains private, the sources who wish to remain anonymous have also said Vodafone, the biggest shareholder in Vodacom, could sell most of its stakes in the unit to Vodacom but will not be finalised until the government gives its approval.
All leading personalities of both Vodafone and Vodacom and the minister of communication, Madam Ursula Owusu-Ekuful have refused giving comments on the issue.
Bloomberg Intelligence Analyst, Erhan Gurses said Vodafone “may struggle to find attractive offers for its Ghanaian unit — given a dwindling subscriber base and 30% government stake — so a sale to its African subsidiary Vodacom looks likely”.
Vodafone, over the last few years has had it focus on Africa and Europe, looking to generate income from its core assets. Under the leadership of CEO, Nick Read, the company has sold units in New Zealand and Malta, and is targeting an initial public offering of its mobile-mast business in early 2021.
The government of Ghana has taken a proactive interest in the telecoms sector, clashing with market leader MTN over its dominance even after successfully pushing for a local listing of the business. This is likely to make the sale to Vodacom possible.
Source: BusinessDay