Government of Ghana to acquire 100% stake in AirtelTigo
The government of Ghana, Bharti Airtel and Millicom International Cellular S.A. on Friday announced execution of the definitive agreement for transfer of ‘AirtelTigo’ to Government of Ghana, on a going concern basis.
In the proposed agreement, the Government of Ghana (GoG) will acquire 100% shares of AirtelTigo along with all customers, assets and liabilities. Basis the agreement, the transaction will entail a takeover by the Government of Ghana post which AirtelTigo would become and operate as a state-entity.
The unsustainable non-controlled joint venture (JV) will be handed to the GoG, will make efforts to revive the company making suitable investments etc. and operate the company while protecting the interests of the customers, employees of the company and all other stakeholders.
The transaction is subject to closing of the mutually agreed conditions and Airtel and Millicom along with GoG will expeditiously complete the closing. Airtel had already written off its investment and provided for in the prior accounts. No further provisions of any material nature are envisaged, the press release stated.
On a consolidated basis, Bharti Airtel reported a net profit of Rs 853.60 crore in Q3 FY21 as against net loss of Rs 1,035.30 crore in Q3 FY20. Net sales during the quarter jumped 24.2% year-on-year (Y-o-Y) to Rs 26,517.80 crore.
Bharti Airtel is a global telecommunications company with operations in 18 countries across South Asia and Africa.
Shares of Bharti Airtel fell 2.55% to Rs 526.25 on BSE. The scrip hit an intraday high of Rs 536 and an intraday low of Rs 523.35 so far.
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