Vodafone is considering options for its Ghana business as the British telecommunications giant focuses on reorganising and paying down debt.
The company could sell its majority stake in the unit to Vodacom, in which Vodafone is the biggest shareholder. The Ghana government will have to approve 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 said in a note.
Vodafone has been steadily consolidating its Africa 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 told management of the Ghana business to report to Vodacom CEO Shameel Joosub from April 2020, another step towards bringing the company’s operations on the continent under one roof.
Source: Business Day