Compelling us to list on GSE misplaced - Vodafone

Telecommunications giant, Vodafone Ghana has indicated that demand by the Ghana Stock Exchange to list on the bourse following its recent acquisition of 4G LTE License is misplaced.

According to Vodafone Ghana, GSE has got it all wrong since their LTE License conditions do not mandate them to launch an IPO on the GSE.

Earlier this week, Managers of the Ghana Stock Exchange disclosed that they are working with the Ministry of Communications to compel 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 Director of GSE, Kofi Yamoah argued that such a move will strengthen Vodafone’s operations in the country and will also provide Ghanaians an opportunity to own part of a company that was originally Ghanaian.

But in a statement signed and released by the External Affairs Director of Vodafone Ghana, Gayheart Mensah said “Vodafone places on record that it has no aversion to listing or for accommodating local participation in the company’s fortunes”.

This is because Government of Ghana already owns 30 percent of the company and an IPO on the exchange is clearly not required.

Read below the full statement issued by Vodafone Ghana

“VODAFONE MUST LIST” – GSE GOT IT WRONG!

We refer to media publications in which the leadership of the Ghana Stock Exchange (GSE) is reported to have indicated that Vodafone must be compelled to list on the bourse following its recent acquisition of 4G LTE License.

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”, said External Affairs Director, Gayheart Mensah.