Largest French telecommunications operator France Telecom has been selected by the Government of Ghana to acquire 51% stake in the incumbent Ghana Telecom, the Ghana Chronicle has reported.
France Telecom has been following its strategy of pursuing growth in fast growing markets outside of Western Europe such as its acquisition of 51% stake in Telkom Kenya last week and the acquisition of majority stake in Jordan Telecom last year. The company currently has presence in Africa, including operations in Senegal and Mali. Other European telecommunication companies have also expanded their operations to growing Asian and African markets such as UK-based Vodafone’s acquisition of a controlling stake in the Indian operations of Hutchison Telecom earlier this year.
This decision came few days after Singapore Telecom withdrew from the race.
Vodacom and Portugal Telecom were competing against France Telecom for the Ghana Telecom stake. Singapore Telecom withdrew from the race earlier this month. The deal is expected to be worth approximately $500-$600m.
The Government of Ghana announced earlier this year that 51% share of Ghana Telecom would be sold to a strategic investor to enhance efficiency and quality of service, and attracted twenty foreign investors The rest of the shares would be floated on the Ghana stock exchange.
Earlier this month, France Telecom also secured a global license that covers 2-3G mobile and fixed telecommunication services, internet and international gateway in Niger along with its partners.
Source: ComputerWire daily updates