Millicom agreed to sell its operations in Tanzania and divest its stake in the AirtelTigo joint venture in Ghana operated with Bharti Airtel, completing the final chapter of its long-running strategy to exit Africa and concentrate on Latin America.
In Tanzania, Millicom lined up a sale to Madagascar-based Axian Group for an undisclosed sum. The acquirer was part of a consortium involved in a similar daek in Senegal in 2018.
Along with Airtel, Millicom also entered into a definite agreement to transfer ownership of AirtelTigo to Ghana’s government. Although the full amount for the transaction was not stated, Millicom said it will secure $25 million as a result.
The agreement, which will see the government acquire 100% of AirtelTigo’s shares along with all customers, assets and agreed liabilities, follows the announcement in October last year of the company’s decision to exit the Ghanaian market.
The transaction is subject to closing of the mutually agreed conditions and the three parties involved will expeditiously complete the closing, Bharti Airtel said in a filing.
In a statement, the Minister for Communications and Digitalisation, Ursula Owusu-Ekuful, noted the government considers this a positive step as it adds to the growing portfolio of digital infrastructure assets being utilised by the state. ‘Government will operate this national asset in the best interest of the nation, the company, telecommunications industry, and ensure the protection of the interests of all employees, customers, contractors, suppliers, stakeholders and sustain the digital transformation of Ghana,’ she stressed.
She added that: ‘The telecommunications sector is of strategic importance to the government and it is critical the sector remains healthy, dynamic, vibrant and most importantly, competitive.’
Bharti Airtel and Millicom International Cellular (MIC) merged their Ghana operations in October 2017 to create the country’s second largest cellco at the time, although it has since slipped behind rival Vodafone Ghana. According to the latest figures released by the National Communications Authority (NCA), the operator had 8.14 million subscribers at 31 December 2020, compared with 8.54 million twelve months earlier.
Millicom CEO Mauricio Ramos explained the African asset divestitures opens a new chapter in the company’s history “solely focused on the Latin American region”, where it will look to deliver “reliable high-speed mobile and fixed broadband” to address factors such as “low penetration and data speeds”.