GT share sale hits snag - as Leadership of House fly out of country
By myjoyonline - Myjoyonline.com Business/Finance | Mon, 21 Jul 2008
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The ratification of the Ghana Telecom share sale agreement might not happen anytime soon.
Government officials were hoping that Parliament would reconvene shortly to ratify the agreement after they went on recess on Friday but the leadership of the Legislature is currently out of the country.
The Speaker, Begyina Sekyi Hughes, the Majority Leader, Abraham Osei Aidoo, and the Minority leader, Alban Bagbin left for the United States to attend a conference.
Attempts to ratify the GT share sale failed as the joint Finance and Communications Committee of Parliament could not agree on the final document in time for it to be considered by Parliament.
The House is on recess until October and Communications Minister, Dr Benjamin Aggrey Ntim, has told Joy News that the next stop on the discussions would depend on the leadership of Parliament.
“This is a national exercise so it is the nation that is going to decide when to have this exercise completed,” he stated.
The government has been under a barrage of criticism after accepting to entering into an agreement with Vodafone (plc) UK to offload all of its (government's) 70 per cent shares in Ghana Telecom.
Members of the opposition National Democratic Congress (NDC) have described the deal as irresponsible.
In October 2006, the Government of Ghana began a process of identifying a strategic investor to acquire between 55% and 65% of the equity of Ghana Telecom (GT) and to take over management of Ghana Telecom (GT) operation.
Subsequently, transaction advisors were selected and the government advertised for the sale of 66.7% shares. Now we are been told that has been adjusted upwards to 70% contrary to Government's own advertisement.
Offers were received from major prospective buyers including Egypt Telecom, France Telecom, Globa Com and a local Ghanaian led consortium. There was some interest expressed also by Portugal Telecom and another entity from India.
In March 2008, overtures were made to Vodafone plc UK seeking an offer.
Vodafone's offer was $960 million with stringent caveats still far below the Minority expectations of $1.5 billion or more for the value of GT (subject to its own internal valuation and audits to be conducted during its due diligence process).
Parliament was expected to ratify the agreement before going on recess on Friday 19, July 2008.
However the deal has now hit a snag as leaders of the House are out.
Source: myjoyonline - Myjoyonline.com
Government officials were hoping that Parliament would reconvene shortly to ratify the agreement after they went on recess on Friday but the leadership of the Legislature is currently out of the country.
The Speaker, Begyina Sekyi Hughes, the Majority Leader, Abraham Osei Aidoo, and the Minority leader, Alban Bagbin left for the United States to attend a conference.
Attempts to ratify the GT share sale failed as the joint Finance and Communications Committee of Parliament could not agree on the final document in time for it to be considered by Parliament.
The House is on recess until October and Communications Minister, Dr Benjamin Aggrey Ntim, has told Joy News that the next stop on the discussions would depend on the leadership of Parliament.
“This is a national exercise so it is the nation that is going to decide when to have this exercise completed,” he stated.
The government has been under a barrage of criticism after accepting to entering into an agreement with Vodafone (plc) UK to offload all of its (government's) 70 per cent shares in Ghana Telecom.
Members of the opposition National Democratic Congress (NDC) have described the deal as irresponsible.
In October 2006, the Government of Ghana began a process of identifying a strategic investor to acquire between 55% and 65% of the equity of Ghana Telecom (GT) and to take over management of Ghana Telecom (GT) operation.
Subsequently, transaction advisors were selected and the government advertised for the sale of 66.7% shares. Now we are been told that has been adjusted upwards to 70% contrary to Government's own advertisement.
Offers were received from major prospective buyers including Egypt Telecom, France Telecom, Globa Com and a local Ghanaian led consortium. There was some interest expressed also by Portugal Telecom and another entity from India.
In March 2008, overtures were made to Vodafone plc UK seeking an offer.
Vodafone's offer was $960 million with stringent caveats still far below the Minority expectations of $1.5 billion or more for the value of GT (subject to its own internal valuation and audits to be conducted during its due diligence process).
Parliament was expected to ratify the agreement before going on recess on Friday 19, July 2008.
However the deal has now hit a snag as leaders of the House are out.
Source: myjoyonline - Myjoyonline.com
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