Bharti Airtel has executed a definitive agreement with the Government of Ghana and Millicom International Cellular S.A. ("Millicom") for the transfer of ‘AirtelTigo’ (Airtel Ghana Limited and Millicom Ghana Limited) to the Government of Ghana on a going concern basis.
Notably, the Ghana government will acquire 100% shares of AirtelTigo along with all customers, assets and liabilities.
Under 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 the closing of the mutually agreed conditions and Airtel and Millicom along with GoG will expeditiously complete the closing.
As per the regulatory filing, Airtel had already written off its investment and provided for it in the prior accounts. No further provisions of any material nature are envisaged.
At around 2.35 pm, Bharti Airtel is trading at Rs527.70 per piece down by 2.4%.