Vodafone Intends To Sell Its Ghana Business Unit
Vodafone wants to take up other alternatives for its Ghana business as the British telecommunications giant aims at reorganizing and paying down debt.
The company could sell its bigger stake in the unit to Vodacom, in which Vodafone is the highest shareholder. The Ghana government will have to endorse this deal if it materialises.
The carrier “may struggle to find attractive offers for its Ghanaian unit — given a dwindling subscriber base and 30% government stake — so a sale to its African subsidiary Vodacom looks likely”, Bloomberg Intelligence analyst Erhan Gurses stressed in a note.
Vodafone has been gradually consolidating its African interests under Vodacom, in which it holds a more than 60% stake, selling a minority shareholding in Kenyan market-leader Safaricom to the SA company in 2017.
Vodafone also assured the management of the Ghana business to report to Vodacom CEO Shameel Joosub from April 2020, another step towards pulling the company’s operations on the continent under one roof.