Telecoms company Millicom International Cellular S.A. has signed an agreement with Bharti Airtel Limited to combine their operations in Ghana, a move that should see them take up the number two position in the market.
Both companies will have equal ownership and governance rights in the new entity comprised of their subsidiaries, Tigo Ghana Limited and Airtel Ghana Limited, whose network should extend to more than 80% of the country, providing the widest 3G coverage available.
The combined business, known as Tigo Airtel, would serve nearly 10 million customers, of which 5.6 million are data users, generating revenues close to $300 million (€284 million).
Mohamed Dabbour, executive vice president of Millicom Africa, said the deal should improve services for local customers.
“In a highly fragmented telecom market, this deal represents a major milestone for our business in Ghana. The combination of Tigo and Airtel will create an operator that will be able to offer Ghanaian consumers and businesses a state of the art network with high speed mobile data coverage. This transaction underlines confidence in the Ghanaian economy, and provides the opportunity to develop nationwide digital infrastructure and services in Ghana,” he said.
The agreement is subject to approval from the relevant local authorities.
