The Government of Ghana, Bharti Airtel and Millicom International Cellular S.A. on Friday announced execution of the definitive agreement for transfer of 'AirtelTigo' to Government of Ghana, on a going concern basis.
In effect, the Ghanaian government will take over the ownership of AirtelTigo joint venture. The announcement marks execution of the definitive pact for transfer of Airtel-Millicom mobile operations to Government of Ghana, Airtel said in a filing.
In the proposed agreement, Government of Ghana will acquire 100 per cent stake in AirtelTigo along with all customers, assets and liabilities.
"Basis the agreement, the transaction will entail a seamless takeover by Government of Ghana post which AirtelTigo would become and operate as a State entity," the filing said.
The unsustainable non-controlled JV will be handed to the government, which is committed to reviving the company making suitable investments and to operate the company while protecting the interests of the customers, employees and other stakeholders.
The transaction is subject to closing of the mutually agreed conditions and the three parties involved will expeditiously complete the closing, it said.
Airtel had already written off its investment and provided for in the prior accounts. No further provisions of any material nature are envisaged, the Airtel filing added.