|
Celtel completes privatisation process
for WESTEL
Accra, Dec. 24, Ghanadot/GNA - Government has officially
welcomed Celtel International BV, as a new market entrant
into the telecom sector after it paid USD115 million to the
government, signifying the termination of the privatisation
process of Western Telesystems Limited (WESTEL).
The receipt of Celtel's payment, represents transaction
payment of its shareholding in WESTEL and concludes the
Sales and Purchase Agreement (SPA), a statement issued by
the Ministry of Information and National Orientation said on
Monday.
The statement, signed by Ms. Oboshie Sai-Cofie, the
Minister, said this left a balance of five million US
dollars subject to the completion of due diligence
by the time of assumption of the company by Celtel.
It said the transfer of Western Wireless International (WWI)'s
66.67 per cent shares to the Government of Ghana in 2005 and
the need to secure strategic investment to re-position
WESTEL as a significant telecommunications service provider
in the country necessitated its privatisation.
The statement recalled an earlier statement issued on
October 24, 2007, informing the public about the conclusion
of negotiations for the divestiture of WESTEL stating that,
a price offer of USD 120 million had been agreed for 75 per
cent shareholding, following extensive negotiations.
It said this reduced to 70 per cent within three years, when
Celtel would release five per cent of its shares in addition
to those to be released by the government and floated on the
Ghana Stock Exchange to benefit the Ghanaian public.
Under the agreement, a USD 25 million due to the National
Communications Authority and payable over an 11-year period
of the licence's lifespan was reduced to USD15 million, and
paid outright as part of the offer price of USD 120 million.
The outright payment is actually
a deal struck to save government some money.
It was also made clear that Kinz Telecom, as the highest
bidder for WESTEL, was not able to fulfil its undertaking to
make payment within an agreed stipulated period, hence, the
government invited Celtel as the next successful bidder into
the negotiations.
The statement said the privatisation exercise for Ghana
Telecom was still in progress and that offers received so
far had not met the expectation of government.
GNA
|
