Vodafone acquires 70 percent stake in Ghana Telecom

By Mike Elliott and Kwasi Kpodo

LONDON/ACCRA (Reuters) - Vodafone Group(VOD.L) said on Thursday it paid $900 million (454 million pounds) for a 70 percent stake in Ghana Telecom, the African country's third largest mobile phone operator.

The deal, signed in the Ghanaian capital of Accra, still requires approval of the country's parliament. Vodafone spokesman Simon Gordon said it was expected to be given by the end of the third quarter of 2008.

Vodafone, the world's largest mobile phone group by revenue, said the government of Ghana would retain a 30 percent stake in Ghana Telecom, which has an enterprise value of around $1.3 billion.

"Ghana is one of the most attractive markets in Africa with mobile subscribers growing at more than 55 percent (per annum) and mobile penetration around 35 percent," Vodafone Chief Executive Arun Sarin said in a statement.

A government official said the deal would benefit consumers. "With this, Ghana Telecom will be able to deliver superior product and services to Ghanaians in every corner of the country," Ghana's Information Minister Stephen Asamoah-Boateng said in Accra.

He added that the government also reached an understanding to float Ghana Telecom shares on the Ghana Stock Exchange.

Vodafone said mobile penetration was low at 35 percent in Ghana, which has a population of 24 million with more than 50 percent under the age of 25. About 2.7 million subscribers were added in 2007.

The deal gives Vodafone majority control of the company, which has a 17 percent share of the market and had around 1.4 million customers at the end of March. It is also Ghana's leading fixed-line operator.