Vodafone buys 70% in Ghana Telecom
Vodafone has acquired a 70% stake in state-owned Ghana Telecom, Ghana’s third-largest mobile operator and largest fixed line and broadband operator, for $900 million.
By ET Bureau |
LONDON: Vodafone has acquired a 70% stake in state-owned Ghana Telecom, Ghana���s third-largest mobile operator and largest fixed line and broadband operator, for $900 million. Vodafone intends to use the experience gained from acquisitions in India to roll out its plans for Ghana Telecom.
Vodafone CEO Arun Sarin said: ���Ghana is one of the most attractive markets in Africa, with mobile subscribers growing at more than 55% per annum 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.���
The Ghana government will retain a 30% stake in the company, the enterprise value of which has been pegged at around $1.3 billion. Ghana has a total population of 24 million, with more than 50% under 25. It had real GDP growth of 6.3% in 2007, contained inflation and a stable political background, and has recently made significant oil discoveries. As part of the transaction, the government of Ghana���s fibre network assets will be transferred to Ghana Telecom.
Over the next five years, the company expects Ghana Telecom to invest over $500 million in its operations and network, restoring and expanding network coverage and completing and integrating the fibre backbone. Vodafone said it plans to leverage its experience of rapid network deployment in India and other emerging markets, its brand and successful customer propositions, such as M-PESA and ultra-low cost handsets, to accelerate Ghana Telecom���s growth.
Vodafone has consistently followed a policy of acquisitions in high-growth emerging markets like India to offset a slowdown in its core European markets.
Vodafone CEO Arun Sarin said: ���Ghana is one of the most attractive markets in Africa, with mobile subscribers growing at more than 55% per annum 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.���
The Ghana government will retain a 30% stake in the company, the enterprise value of which has been pegged at around $1.3 billion. Ghana has a total population of 24 million, with more than 50% under 25. It had real GDP growth of 6.3% in 2007, contained inflation and a stable political background, and has recently made significant oil discoveries. As part of the transaction, the government of Ghana���s fibre network assets will be transferred to Ghana Telecom.
Over the next five years, the company expects Ghana Telecom to invest over $500 million in its operations and network, restoring and expanding network coverage and completing and integrating the fibre backbone. Vodafone said it plans to leverage its experience of rapid network deployment in India and other emerging markets, its brand and successful customer propositions, such as M-PESA and ultra-low cost handsets, to accelerate Ghana Telecom���s growth.
Vodafone has consistently followed a policy of acquisitions in high-growth emerging markets like India to offset a slowdown in its core European markets.
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