Refuse to “C u around” in Africa (Ghana)Vodafone’s $900.66m purchase of a controlling stake in the state-owned Ghana Telecom has been blocked by the Ghanian Government. At the start of the month Vodafone, the world’s largest operator in terms of revenue, announced that it had effectively gazumped France Telecom by agreeing to acquire 70 per cent of the Ghanaian carrier with the government set to retain the remaining 30 per cent.
However,the controversial deal had been criticised by members of Ghana’s main opposition party, the National Democratic Congress. Who believed Vodafone was getting its hands on the nation’s incumbent telecoms operator on the cheap.
The block might signal an opportunity for France Telecom to once again enter the fray potentially pushing up the sale price. “Other bidders are likely to offer higher bids than Vodafone and address the socio-economic needs of the country,” according to NDC.
The acquisition looked like it might be a final feather in the cap for outgoing Vodafone chief Arun Sarin who steps down at the end of this month. “Ghana is one of the most attractive markets in Africa with mobile subscribers growing at more than 55 per cent per annum and mobile penetration around 35 per cent. 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,” he said.
Over the next five years Ghana Telecom is to invest over $500m in its operations and network, restoring and expanding network coverage and completing and integrating the fibre backbone, as well as introducing initiatives such as M-PESA and ultra-low cost handsets he further added.
