Calls for us to list on the stock market misplaced-Vodafone

Vodafone Ghana says attempts by the Ghana Stock Exchange to compel the company to list on the stock market after acquiring a 4G license is misplaced.

Vodafone said they are 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 nor the license condition do not make reference to listing on the bourse hence its decision.

The comments are 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.

The statement signed by the Director of External Affairs, Gayheart Mensah said since the license requires successful companies to ensure 25 percent Ghanaian ownership of their operations and the government already owns thirty per cent, they cannot be compelled to list on the local bourse.

Read also: GSE to make a formal request for Vodafone to list on local stock market

“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.”

According to the statement, the “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,” the statement added.

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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