We’re not mandated to list on stock market –Vodafone

Vodafone Ghana says it is not mandated to list on the Ghana Stock Exchange following the acquisition of the 4G license.

The company in a statement stressed that the bid documents for the license as well as the license condition do not make reference to listing on the bourse hence its decision.

The comment is in response to remarks by the management of the Ghana Stock Exchange that they will work to get Vodafone to list on the stock market to allow the public own a stake in the company.

But Vodafone maintains since the license requires successful companies to ensure 25 percent Ghanaian ownership of their operations and the government already owns thirty percent, they cannot be compelled to list on the local bourse.

“In fact, the bidding process for the 4G LTE license requires successful companies to ensure 25 per cent Ghanaian ownership of their operations, which is not the same as listing on the GSE. Vodafone has already satisfied this requirement, since the Government of Ghana owns 30 per cent of the company. An IPO on the exchange is, therefore, clearly not required.”

The statement signed by the Director of External Affairs, Gayheart Mensah further noted, “Our focus now is on ensuring our infrastructure is ready for 4G deployment and full-scale rollout as early as possible. We remain committed to offering our customers the real 4G experience.”

“Our continuous successful partnership with government and the business’s investment in spectrum, infrastructure, products and services and in our staff are proof of Vodafone’s commitment to Ghana. We are proud to be Ghanaian and at the center of the telecommunications revolution in the country.”

Managers of the Ghana Stock Exchange have disclosed that they are working with the Ministry of Communications to compel telecom company Vodafone to float part of its shares on the bourse as a requirement after it purchased a 4G spectrum.

Justifying the need for Vodafone to list on the stock exchange, the Chief Executive Officer of the Kofi Yamoah argued that such a move will also strengthen Vodafone’s operations in the country.

He was of the view that compelling Vodafone to list will provide Ghanaians an opportunity own part of a company that was originally Ghanaian.

“When Ghana Telecom was being sold to Vodafone in 2008, part of the agreement required that Vodafone lists on the market but till now it is yet to be fulfilled.”

Below is the full statement from Vodafone

The 4G LTE License conditions DO NOT mandate licensees to launch an IPO on the GSE and nowhere in the bid documents or the license condition is reference even made to listing. The notion of compelling Vodafone to list on the GSE is therefore misplaced.

In fact, the bidding process for the 4G LTE license requires successful companies to ensure 25 per cent Ghanaian ownership of their operations, which is not the same as listing on the GSE.

Vodafone has already satisfied this requirement, since the Government of Ghana owns 30 per cent of the company. An IPO on the exchange is, therefore, clearly not required.

This said, Vodafone places on record that it has no aversion to listing, or for accommodating local participation in the company’s fortunes, as the publications suggest.

“Our focus now is on ensuring our infrastructure is ready for 4G deployment and full-scale rollout as early as possible. We remain committed to offering our customers the real 4G experience.

“Our continuous successful partnership with government and the business’s investment in spectrum, infrastructure, products and services and in our staff are proof of Vodafone’s commitment to Ghana. We are proud to be Ghanaian and at the center of the telecommunications revolution in the country.”

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Source: citibusinessnews.