Bharti Airtel and Millicom International Cellular have entered into an agreement for Tigo Ghana and Airtel Ghana to combine their operations in Ghana where Airtel and Millicom would have equal ownership and governance rights in the combined entity.
Mumbai: Bharti Airtel and Millicom International Cellular, which works under the brand Tigo, on Friday said that they have entered into an agreement for Tigo Ghana and Airtel Ghana to combine their operations in Ghana where Airtel and Millicom would have equal ownership and governance rights in the combined entity.
ET had reported on January 23 that Bharti Airtel, that is embroiled in a brutal tariff war in India, was looking to merge with rival Millicom to improve operations in Africa where it is yet to make a profit since entering the continent in 2010.
The combined business would serve nearly 10 million customers, of which 5.6 million are data customers. The entity would cover more than 80% of Ghana’s population and would have revenues close to $300 million, replacing Vodafone to become the second largest operator in Ghana.
"The coming together will further strengthen our position in the market and offer huge benefits arising out of synergies in operations, resulting in better experience for the customers," Raghunath Mandava, MD and CEO, Airtel Africa, said.
With the combined fibre footprint and increased number of data centres, enterprise customers - including both large corporations and SMEs - would have access to a diverse portfolio of world-class solutions, Bharti Airtel said.
Airtel Ghana contributes 6-7% to Bharti Airtel’s Africa revenue, which totaled close to $900 million for the July-September quarter.
"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 and provides the opportunity to develop nationwide digital infrastructure and services in Ghana," Mohamed Dabbour, Executive Vice President, Millicom Africa, said.
Turning around Africa is all the more important for the company faced with severe financial pressures in its largest market of India, where it is in the midst of a cutthroat price war unleashed by the entry of Reliance Jio Infocomm.
The transaction is subject to obtaining approvals from the relevant authorities in Ghana and the satisfaction of customary closing conditions, an official statement said.
Mumbai: Bharti Airtel and Millicom International Cellular, which works under the brand Tigo, on Friday said that they have entered into an agreement for Tigo Ghana and Airtel Ghana to combine their operations in Ghana where Airtel and Millicom would have equal ownership and governance rights in the combined entity.
ET had reported on January 23 that Bharti Airtel, that is embroiled in a brutal tariff war in India, was looking to merge with rival Millicom to improve operations in Africa where it is yet to make a profit since entering the continent in 2010.
The combined business would serve nearly 10 million customers, of which 5.6 million are data customers. The entity would cover more than 80% of Ghana’s population and would have revenues close to $300 million, replacing Vodafone to become the second largest operator in Ghana.
"The coming together will further strengthen our position in the market and offer huge benefits arising out of synergies in operations, resulting in better experience for the customers," Raghunath Mandava, MD and CEO, Airtel Africa, said.
With the combined fibre footprint and increased number of data centres, enterprise customers - including both large corporations and SMEs - would have access to a diverse portfolio of world-class solutions, Bharti Airtel said.
Airtel Ghana contributes 6-7% to Bharti Airtel’s Africa revenue, which totaled close to $900 million for the July-September quarter.
"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 and provides the opportunity to develop nationwide digital infrastructure and services in Ghana," Mohamed Dabbour, Executive Vice President, Millicom Africa, said.
Turning around Africa is all the more important for the company faced with severe financial pressures in its largest market of India, where it is in the midst of a cutthroat price war unleashed by the entry of Reliance Jio Infocomm.
The transaction is subject to obtaining approvals from the relevant authorities in Ghana and the satisfaction of customary closing conditions, an official statement said.
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