" ITREALMS: Celtel acquires 75% Westel for $120m

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Wednesday, October 24, 2007

Celtel acquires 75% Westel for $120m

Celtel International, a subsidiary of Zain has signed an agreement with Ghanaian government to acquire 75 per cent of Western Telesystems Ltd (Westel) for the sum of $120 million.

This would avail the government of Ghana to retain 25 per cent in Westel through the Ghana National Petroleum Corporation, while increasing Zain’s spreads to 22 countries with 15 of this figure in Africa, even as this would tilt the telco towards achieving ‘One-network’ in the West African region, which is currently being enjoyed in the East part of the continent.

The acquisition soon to be concluced and subject to the final approval of the relevant authorities, the telco said, affords it the “gateway to West Africa.”

Westel is the second national operator in Ghana and is licensed to provide fixed and Global System for Mobile (GSM) telecommunications services.

Speaking on the latest development Zain’s chief executive officer, Dr. Saad Al Barrak, said the telco is expected to venture into Ghana, describing it as important market on the continent in the deal, which Lehman Brothers acted as sole financial adviser.

“We look forward to offering Ghanaians the quality telecommunications services which we provide in all the countries in which we operate. Based on our pan-African experience we are confident that the increased competition in telecommunications will benefit the people of Ghana and support the already robust national economy of the country.”

Dr Al-Barrak emphasised that Celtel will be investing millions of dollars in a state-of-the art telecommunications network and associated services to offer its unparalleled experience as a pan-African operator.

For the Ghanaian Minister of Communications, Dr. Benjamin Aggrey Ntim, “The government of Ghana is delighted to welcome a world class telecommunications operator such as Celtel to Ghana, and we look forward to working together as partners. We are also very pleased to announce that the parties have agreed to list a portion of the company’s shares in the future on Ghana ’s public stock exchange for the benefit of Ghanaians.”

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