Bharti Airtel and Millicom International Cellular on Monday announced the closure of a deal to combine their operations in Ghana.
Under the joint agreement, Airtel and Millicom will have equal ownership and governance rights in the combined entity, which will have revenues of about $300 million.
Regulator nod
The National Communications Authority, Ghana’s communications regulator, had granted approval for the merger proposal early this month.
The merged entity will become Ghana’s second largest mobile operator with close to 10 million subscribers, Bharti Airtel said in a statement, adding that “the combined networks of the two companies will cover more than 80% of Ghana’s population, in particular in villages and far flung areas.”
The significant synergies from this merger will help the combined entity achieve profitability and cash-flow levels faster, the statement added.
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 company said.
