Airtel, Millicom sign pact to combine Ghana operations
As per the agreement, Airtel and Millicom will have equal ownership and governance rights in the combined entity in Ghana
Latest News »
New Delhi: Telecom operator Bharti Airtel on Friday said it has signed an agreement with Millicom International Cellular to combine their operations in Ghana.
“The companies have, through their respective subsidiaries, entered into an agreement for Tigo Ghana and Airtel Ghana to combine their operations in Ghana,” a statement said.
As per the agreement, Airtel and Millicom will have equal ownership and governance rights in the combined entity, it added. The combined business will serve nearly 10 million customers, of which 5.6 million are data users. It will have revenues close to $300 million, making it one of the largest communication companies in Ghana. It will cover more than 80% of Ghana’s population with high-speed data, providing the widest 3G coverage across the country.
The transaction is subject to obtaining approval from relevant authorities in Ghana and the satisfaction of customary closing conditions. “It will further strengthen our position in the market and offer huge benefits arising out of synergies in operations, resulting in better experience for the customers,” Airtel Africa MD and CEO Raghunath Mandava said. With the combined fibre footprint and increased data centres, enterprise customers—including both large corporations and SMEs—will have access to a diverse portfolio of world-class solutions. Mobile Financial Services will also be greatly enhanced with combined agent networks and platforms, the statement said.
“In a highly fragmented telecom market, this deal represents a major milestone for our business in Ghana. The combination of Tigo and Airtel will create an operator that will be able to offer Ghanaian consumers and businesses a state-of-the-art network with high-speed mobile data coverage,” Millicom Africa executive vice-president Mohamed Dabbour said.