Millicom and Airtel Sign Agreement to Combine Operations in Ghana
- Both Companies to Have Equal Ownership and Governance Rights in the Combined Entity
- Joint Entity Would be a Strong No. 2 Operator With Nearly 10 Million Customers, Including Over 5.6 Million Data Customers
- Combined Entity to Deliver Superior Voice and Data Services Over a Wider Network Footprint
- Combined Network to Cover More Than 80% of Ghana's Population With High Speed Data, Providing the Widest 3G Coverage Across the Country
03 Mar, 2017, 11:39 GMT
LUXEMBOURG, Mar 03, 2017 /PRNewswire/ --
Millicom International Cellular S.A. ("Millicom") and Bharti Airtel Limited ("Airtel"), today announced that they have, through their respective subsidiaries, entered into an agreement for Tigo Ghana Limited and Airtel Ghana Limited to combine their operations in Ghana. As per the agreement, Millicom and Airtel would have equal ownership and governance rights in the combined entity.
The combined business would serve nearly 10 million customers, of which 5.6 million are data customers. It would cover more than 80% of Ghana's population with high speed data, providing the widest 3G coverage across the country, and would have revenues close to $300m, making it one of the largest communications companies in Ghana.
The transaction is subject to obtaining approvals from the relevant authorities in Ghana and the satisfaction of customary closing conditions.
By integrating the two networks, the combined business is expected to provide Ghanaian customers with a major boost in both rural and urban network coverage – in turn translating into better voice quality, high speed data services and reinforced network stability and resilience. With the combined fibre footprint and increased data centres, enterprise customers including both, large corporations and SMEs, would have access to a diverse portfolio of world class solutions. Mobile Financial Services is also expected to be greatly enhanced with combined agent networks and platforms.
Mohamed Dabbour, Executive Vice President, Millicom Africa, said: "In a highly fragmented telecom market, this deal represents a major milestone for our business in Ghana. The combination of Tigo and Airtel will create an operator that will be able to offer Ghanaian consumers and businesses a state of the art network with high speed mobile data coverage. This transaction underlines confidence in the Ghanaian economy, and provides the opportunity to develop nationwide digital infrastructure and services in Ghana."
Raghunath Mandava, MD and CEO, Airtel Africa, said: "The agreement highlights our commitment to the Ghana market and our customers. The coming together of the two entities will benefit customers, who can now enjoy an extensive combined network and a wider range of affordable and innovative products and services. It will further strengthen our position in the market and offer huge benefits arising out of synergies in operations, resulting in better experience for the customers."
For further information, please contact:
Press:
Vivian Kobeh,
Corporate Communications Director
Tel: +352-277-59084 / +44-7971-919-610
E-mail: press@millicom.com
Investors:
David Boyd,
Interim Investor Relations Director
Tel: +44-20-3249-2413
E-mail: investors@millicom.com
Mauricio Pinzon,
Investor Relations Manager
Tel: +44-20-3249-2460
E-mail: investors@millicom.com
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SOURCE Millicom International Cellular