Managers of the Ghana Stock Exchange have disclosed that they are working with the Ministry of Communications to compel telecom company 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 Executive Officer of the Kofi Yamoah argued that such a move will also strengthen Vodafone’s operations in the country.
He was of the view that compelling Vodafone to list will provide Ghanaians an opportunity own part of a company that was originally Ghanaian.
“When Ghana Telecom was being sold to Vodafone in 2018, part of the agreement required that Vodafone lists on the market but till now it is yet to be fulfilled”
Mr. Yamoah observed that this the right time for the telco to list since it has being granted another opportunity by with the 4G spectrum
“I had a discussion with the Ministry of Communications and my view is that Vodafone must be made to list on the Ghana Stock Exchange just it was done to MTN when they purchased the spectrum”
Vodafone acquired the spectrum at a cost of 30 million dollars. MTN which first acquired a 4G spectrum for 67.5 million dollars in 2015 was required to float at least 10 percent shares to the public which it did.
Even though Vodafone got the cost of the spectrum less than what MTN paid for, the regulator, the National Communications Authority (NCA) in a statement explained that Vodafone negotiated for the cost.
MTN listing boost GSE
Data available shows that after MTN listed, the Ghana Stock Exchange market’s capitalization increased by some 16.4 per cent, from 55.97 billion cedis to 65.19 billion cedis.
This was a remarkable achievement for the bourse in 2018 since the market was rebounding from a poor performances in 2016 and 2017. Kofi Yamoah believes the listing of Vodafone will further entrench the position of the Ghana’s Stock Exchange as the best growing bourse and will benefit the Ghanaian.
Meanwhile, Vodafone has already indicated that government through the people of Ghana own 30 percent share in the company hence there is no compelling reason to list on the stock exchange now.
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Source: citibusinessnews.com
