August 21, 2016
UK-based mobile operator Vodafone has completed its acquisition of a 70% stake in Ghana Telecom.
The acquisition of state-run Ghana Telecom has cost Vodafone US$900 million, and had to be approved by the Ghanaian Parliament.
Approval was granted by the parliament last week, although Ghana’s opposition party branded the controversial sale as a ’sell out’.
The acquisition continues Vodafone’s aggressive expansion strategy in emerging markets.
Vodafone has been expanding in emerging markets recently as strong competition and poor sales in Western markets have eaten away at revenues.
Ghana Telecom is the third largest mobile operator in the country with a 17% market share. Employing 4,000 people it provides services to 1.4 million mobile customers, 379,000 fixed line customers and 15,000 broadband customers.
The company is currently unprofitable and has debts of around $400 million.
Money raised from the sale of Ghana Telecom will be invested into state funds.