Airtel, Millicom announce merger in Ghana with equal ownership, governance rights
ANI | Updated: Oct 16, 2017 12:01 IST
New Delhi [India], October 16 (ANI): Bharti Airtel Ltd. and Millicom International Cellular S.A., through their respective subsidiaries, announced the closure of the deal to combine their operations in Ghana. The merged entity will become Ghana's second largest mobile operator with close to 10 million subscribers.
Under the joint agreement, Airtel and Millicom will have equal ownership and governance rights, which will have revenues of approximately USD 300 million. The Ghana National Communications Authority (NCA) granted approval for the merger proposal earlier this month.
The combined networks of the two companies will cover more than 80 per cent of Ghana's population, in particular, the villages and far-flung areas, and serve customers with affordable world-class voice and data services, affordable global roaming, and mobile-banking services. It will also have one of the largest sales and distribution network to enhance customer convenience.
The significant synergies from this merger will help the combined entity achieve profitability and cash-flow levels faster. In addition, the merged entity with its robust optic fibre footprint and increased number of data centres will bring significant benefits to a diverse portfolio of enterprise customers, including both large corporations and SMEs.
Roshi Motman, the current CEO of Tigo Ghana, will be the new CEO of the joint entity. The merged entity will be deconsolidated and treated as a strategic asset in the form of a Joint Venture and the company will continue to operate both brands - Airtel and Tigo. The process of business consolidation will take place over the next few weeks.
The Airtel and Millicom teams will work together to ensure a smooth transition, streamlining of operations and realisation of synergies to ensure a swift accrual of the merger's benefits to all stakeholders. (ANI)