Merger talks between Airtel and Tigo completed (Ghana)

Tuesday, February 28, 2017

by Business Council for Africa

By Njirani Muchra | Business & Financial Times, Ghana

The thebftonline.com has gathered that, the much-anticipated merger between Airtel Ghana (Airtel) and Millicom International Cellular (Tigo) has been completed.

The merger processes which began last year, got finalized early this year [2017], as the formal announcement on the completion of the process is expected to made soon.

What is not clear is what the shareholding structure of the new company will be with the merger.

Bharti Airtel has been in talks with rival Millicom International Cellular for a possible merger in Ghana for some time now.

The merger some industry watchers say has come about, due to Airtel’s inability to make profit since entering the continent in 2010, even after engaging in brutal tariff war, to improve operations in Ghana and Africa at large.

With this merger between Airtel and Tigo, the combined entity replaces Vodafone to become the second largest telecom operator in Ghana, in an intensely competitive market led by the South Africa-based operator MTN.

When it comes to who will be made the CEO of the new company, it is unclear who will be at the helm of affairs. We all await which of the two companies’ CEO will be appointed to lead following the merger. Currently Lucy Quist is the CEO of Airtel Ghana while Roshi Motman runs Tigo as the CEO.

Figures from the National Communications Authority (NCA) the regulator for the telecom industry shows that, as at the end of 2016, the total number of mobile voice subscriptions increased from 35,008,387 as at the end of the previous year to 38,305,078 as at the end of December 2016 representing a 9.42% increase over the previous month of November 2016. The total penetration rate for the month under review was 136.34%.

Industry Performance

Tigo as at December 2016 mobile voice subscriptions decreased from 5,365,318 as at the end of November 2016 to 5,339,052 at the end of December 2016. This indicates a percentage decrease of 0.49%. Their market share for the month under review was 13.94%.

At the end of December 2016, Airtel’s voice subscriptions decreased from 4,649,934 as at the end of the previous month to 4,591,051. This represents a percentage decrease of 1.27%. Their total market share for the month under review was 11.99%.

Glo recorded a decrease in their mobile voice subscriptions as figures decreased from 750,751 as at the end of November 2016 to 695,306 at the end of December 2016. This represents a percentage decrease of 7.39%. Their total market share for the month under review was 1.82%.

Expresso’s mobile voice subscriptions decreased from 95,548 as at the end of November 2016 to 93,599 as at the end of December 2016. This represents a percentage decrease of 2.04%. Their total market share for the month under review was 0.24%.

Meanwhile MTN continues to lead in voice subscriptions for the period recording 19,296,157 which represents a percentage increase of 2.82% from November 2016’s figure of 18,766,106. MTN’s market share for the month under review was 50.37%.

They are followed by Vodafone. It recorded a decrease in their mobile voice subscription of 8,289,157 as at the end of December 2016. This represents a percentage decrease of 0.18% from November 2016’s figure of 8,304,783. Vodafone’s market share for December 2016 was 21.64%.

Source: https://asokoinsight.com/news/merger-talks-between-airtel-and-tigo-compl...