Vodafone Group is preparing an IPO of its Ghana unit once an agreement is struck with the country’s government (a minority stakeholder) to restructure the division’s debt, Reuters reported.
In an interview with the news publication, Vodafone Ghana CEO Yolanda Cuba said the company was making progress in talks with authorities over a restructuring programme for its debt pile.
Vodafone Group owns a 70 per cent stake in the operator, having bought the share of state-owned Ghana Telecom in 2008 for $900 million and subsequently rebranded the company. The remaining 30 per cent was retained by the government.
Reuters stated the operator group is yet to generate a profit on its investment and plans to turn the unit around have been hampered by its minority stakeholder failing to meet its financial obligations. These issues are now being resolved, Cuba said, with the state committing to help address the operator’s debt.
Progress on a local public listing of Vodafone Ghana follows an IPO of rival MTN’s unit in the country last month. MTN’s listing was a requirement of it being granted the country’s first 4G spectrum licence.
A second 4G licence had been scheduled for auction this month, however in an interview earlier this year with IT Web Africa, Cuba said although Vodafone Ghana needed the licence, it could not afford it.