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Government confirms advanced talks to buy AirtelTigo

The Government of Ghana says it is at the advanced stages of talks to acquire 100% shares of AirtelTigo.

Government confirms advanced talks to buy AirtelTigo

The deal, when completed, will see the government take over the telecommunications company along with all its customers, assets and agreed liabilities.

In a statement, the government said it aims to protect jobs by buying AirtelTigo as well as safeguarding the interest of its stakeholders.

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AirtelTigo currently consists of two merged companies – Airtel and Tigo – and boasts about 5.1 million subscribers.

“The Government of Ghana through this transaction, will temporarily operate this national asset in the best interest of the nation, and ensure the protection of the interests of all employees, customers and stakeholders, and a continuation of the digital transformation in Ghana,” the statement revealed.

“Given the multiplier impact the telecommunications sector has on the economy and various related industries, the Government of Ghana has entered into this agreement to ensure that thousands of Ghanaian jobs are safeguarded.”

In its statement to the Bombay Stock Exchange on Wednesday, Airtel also confirmed that talks were far advanced for the takeover.

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“The parties are in advance stages of discussions for the conclusion of the commercial agreement for the transfer of AirtelTigo on a going concern basis to the Government of Ghana.”

“Accordingly, Airtel is voluntarily taking an impairment charge of Rs 1,841 million (Rs 184 crore),” it added.

The telecommunications company is currently the second-largest mobile operator in Ghana, only after MTN.

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