Bharti Airtel and Millicom International Cellular SA (Millicom) on Friday said they have — through their respective subsidiaries — entered into an agreement for Tigo Ghana Ltd and Airtel Ghana Ltd to combine their operations in Ghana.
Accordingly, Airtel and Millicom would have equal ownership and governance rights in the combined entity, a company release said.
The combined business would serve nearly 10 million customers, of which 5.6 million are data customers.
It would cover more than 80 per cent of Ghana’s population with high speed data and would have revenues close to $300 million, making it one of the largest communications companies in Ghana, Airtel said.
The transaction is subject to obtaining approvals from the relevant authorities in Ghana and the satisfaction of customary closing conditions, it said.
“It will further strengthen our position in the market and offer benefits arising out of synergies in operations, resulting in better experience for the customers,” Raghunath Mandava, Managing Director and Chief Executive Officer, Airtel Africa, said. By integrating the two networks, the combined business is expected to provide Ghanaian customers in both rural and urban network coverage – in turn translating into better voice quality, high speed data services and reinforced network stability and resilience, he said.
“This transaction underlines confidence in the Ghanaian economy, and provides the opportunity to develop nationwide digital infrastructure and services in Ghana,” Mohamed Dabbour, Executive Vice-President, Millicom Africa, said.
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