Government of Ghana to takeover ownership of AirtelTigo Joint Venture

The Government of Ghana, Bharti Airtel Limited ("Airtel") and Millicom International Cellular S.A. ("Millicom") (through their respective subsidiaries), today announced that they have executed the definitive agreement for the transfer of 'AirtelTigo' (Airtel Ghana Limited and Millicom Ghana Limited) to the Government of Ghana on a going concern basis. In the proposed agreement, the Government of Ghana will acquire 100% shares of AirtelTigo along with all customers, assets and liabilities.

Basis the agreement, the transaction will entail a seamless takeover by the Government of Ghana post which AirtelTigo would become and operate as a State entity. The unsustainable non controlled JV will be handed to the GoG, who are committed to reviving 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.

Shares of BHARTI AIRTEL LTD. was last trading in BSE at Rs.540.55 as compared to the previous close of Rs. 539.2. The total number of shares traded during the day was 911363 in over 2796 trades.

The stock hit an intraday high of Rs. 544.3 and intraday low of 538.3. The net turnover during the day was Rs. 494372065.

Source : Equity Bulls

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