The Ghana government will acquire 100 per cent stake in AirtelTigo, Bharti Airtel's ailing joint venture with Millicom International Cellular SA.
"The government of Ghana, Bharti Airtel and Millicom International Cellular through their respective subsidiaries have executed the definitive agreement for transfer of AirtelTigo to the Ghana government on a going concern basis," Bharti Airtel said in a statement.
"Under the proposed agreement, the government of Ghana will acquire 100 per cent shares of AirtelTigo along with all customers, assets and liabilities."
Airtel said the transaction will entail "a seamless takeover by the Ghana government post which AirtelTigo will become and operate as a state entity."
Last October, the Airtel board of directors had cleared the sale of its Ghana joint venture. The company said it has already written off its investment and provided for in the prior accounts which is why no further provisions of any material nature are envisaged.
Bharti Airtel had merged its Ghana operations with Millicom in 2017. Airtel had a non-controlling 49.95 per cent stake in AirtelTigo while the balance 50.05 per cent was held by Millicom.
"The unsustainable non-controlled JV will be handed to the Ghana government who are committed to reviving the company, making suitable investments and operating it while protecting the interests of customers, employees and all other stakeholders," said Airtel.
AirtelTigo serves around 5.1 million subscribers and offers employment opportunities to almost 10,000 people directly and indirectly.
( With inputs from ANI )
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