Telecel Views Vodafone's Ghana Assets as Preface to Intended Initial Public Offering

The head of Telecel Group, an Africa-focused telecommunications company, said the purchase of Vodafone Group Plc’s operations in Ghana is part of a plan to build up its business and go public within the next five years. Telecel Group is part-owned by French tycoon Hugues Mulliez.

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Telecel's all-cash deal is part of the company's expansion strategy ahead of a possible initial public offering, Chief Executive Officer Moh Damush said in an interview. This will help the company to grow its operations and increase its market share.

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"The Ghana deal is important because it's shifting the group from one size to another," Damush said. "The European and London stock exchanges are more familiar with African ecosystems, so that is more attractive for us at the moment."

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Telecel, a leading telecom operator in Africa, was acquired by Damush, Mulliez and Nicolas Bourg in 2017. The firm operates in Central Africa Republic, Liberia and Mali, and is a leading service provider and partner in the region.

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Africa is a key growth market for mobile companies like Telecel, thanks to its young and fast-growing population. However, operators face a number of regulatory and policy risks in many jurisdictions across the continent, as well as challenges posed by poor markets that often lack adequate energy supplies.
In an example of the difficulties such companies can face, MTN Group Ltd., the largest operator in Ghana, said this week it is in talks with local authorities over a $773 million back-tax bill that it disputes.

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According to Damush, Telecel is planning to double the number of towers it operates over the next two years in order to compete with South African-based MTN. Vodafone's network currently consists of around 2,000 towers, while MTN has 5,000.

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According to Damush, the group plans to provide rural areas with connectivity via satellites. He said that new regulations in Ghana to foster competition in the market will also let Telecel offer roaming on the MTN network while its network expansion is being carried out.

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Telecel is in talks with potential investors as it looks to continue its acquisition drive focused mainly on West Africa, Damush said.
Our company is always on the lookout for new opportunities to invest in, and we believe that the Middle East region has great potential. We have the necessary management skills and experience to take on new assets, and our financial resources are growing. Therefore, we are confident that we can successfully expand our operations into this region.