AirtelTigo has announced it is exiting the Ghana market.
In a statement, the network said it is in “advanced” stage of discussions to offload its shares to the government.
Government already has 25% stake in the network.
The conclusion of the transfer of shares, a matter of when not if, would see Government take charge but only temporarily, the statement sighted by theghanareport.com reads.
“The transaction will be concluded by the execution of definitive agreements shortly.”
Whatever thenature of the agreement, the parties have already agreed to the transfer of “all customers, assets and agreed liabilities.”
AirtelTigo said the government control of the network, albeit, temporarily was “in the best interest the nation.”
It said this would ensure the protection of the interests of all employees, customers and stakeholders, and a continuation of the digital transformation in Ghana.
” Given the multiplier impact the telecommunications sector has on the economy and various related industries, the Government of Ghana has entered into this agreement to ensure that thousands of Ghanaian jobs are safe guarded.”
“It is of critical importance that the telecommunications sector remains healthy, dynamic, vibrant, and most importantly, competitive.”
Bharti Airtel in 2017 merged with Millicom’s Tigo in Ghana to become the country’s second largest mobile operator, AirtelTigo, with the approval of The National Communications Authority.
AirtelTigo serves around 5.1 million subscribers and offers direct and indirect employment opportunities to almost 10,000 people.
Celtel International acquired 75% of Western Telesystems Ltd (Westel) from the Government of Ghana for $120 million in 2007.
Celtel was subsequently acquired by the Zain Group which also sold all its African Assets to Bharti Airtel in 2010.
The Government of Ghana remained a shareholder in Airtel Ghana with a 25% holding through the Ghana National Petroleum Corporation, until the AirtelTigo merger, and retained an option to acquire additional shares after the merger.
Westel was at the time of the take over by Celtel, the second national operator in Ghana and was licensed to provide fixed and mobile (GSM) telecommunications services.
Millicom Ghana Limited, was the first mobile telecommunications company to operate in the country under the brand name Mobitel before rebranding to become Tigo.
Source: The Ghana Report