Rainbow Rare Earths Phalaborwa project shaping up to be one of the lowest cost producers globally. Watch the video here.
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Can only be good news for SP!
Did they make any profit on it , details seem very thin
What price did they sell it?
Has all the hallmarks of a fire sale , guess it will be easier to manage but perhaps a smaller business
Yes I noticed that , Where is the price ???
Or do they know they made a loss and don't want to say.
Definitely sold at loss. Not sure how much. Suspicious
When it was going through regulatory approval think I saw $500m all cash offer in a media article..
They purchased the 70% stake for $900m. Probably sold at a loss as they don't want to say.
"They purchased the 70% stake for $900m. Probably sold at a loss as they don't want to say."
As you say the price isn't mentioned, so it isn't definitive whether they've made a capital loss, although on paper they may well have done. Also you'd have to look at how much Vodafone Ghana has contributed to the Vodafone's Africa earnings since 2008, to asses an actual loss. I would suggest that Vodafone have decided to exit Ghana for good reason, only known to themselves, otherwise it's likely they'd have engineered a takeover by Vodacom. Whatever the sale price for this deal, I suspect other unreported side deals have been agreed in the background. For some reason Ghana has become unattractive for Vodafone, and Vodacom aren't interested either.
I read it as a catalytic deal towards a much bigger deal in the future .
Has it washed its face whilst avoided all the capital commitments (more debt) that telecel have had to sign up to before they IPO. If inflation averaged c.3.5% over the c14 years since acquisition, then €500m is the current value of the investment before looking at earnings etc?
Good news for those who want to avoid more debt and want to consolidate
Maybe I'm missing something, but I'm struggling to find a sale price for this deal. When the Sale and Purchase agreement was signed last year, this is what Telecel reported:
"Telecel Group confirms that it has signed a Sale and Purchase Agreement (SPA) with Vodafone to acquire a 70% percent stake in Vodafone Ghana. The agreement is currently pending regulatory approval.
Telecel Group and Vodafone have been in touch with Ghana’s Ministry for Communications, Bank of Ghana, and the National Communications Authority, to finalize all the regulatory requirements related to this transaction. We have received their responses which have not granted the approvals yet and Telecel is willing to re-engage soon after putting together the necessary clarifications.
The acquisition is fully financed by Telecel Group and its partners. Telecel confirms that the potential sale of Vodafone Ghana Towers is not part of the acquisition funding.
Telecel hopes to successfully conclude this transaction and looks forward to engaging with staff and customers, who are important to the business.
Telecel’s business model is unique, which focuses its strengths on overcoming challenges through disruptive innovation. Ghana’s business climate suits the business models of Telecel Group and was the key enabling factor based on which the Group was able to reach an agreement with Vodafone. Telecel Group has already made investments in Ghana as part of the Africa Startup Initiative Program “ASIP”, and it intends to spend around 500 million USD in the first three years to expand and refinance Vodafone’s network across the country."
https://telecelgroup.com/telecel-group-on-acquiring-vodafone-shares-in-ghana/
There was no mention of the sale price and I suspect the $500 million, people are referring to, might be confusion based on Telecel saying: "it intends to spend around 500 million USD in the first three years to expand and refinance Vodafone’s network across the country."
The article also says, "Telecel confirms that the potential sale of Vodafone Ghana Towers is not part of the acquisition funding", so Vodafone may retain some assets after this sale.
Telecel ‘to keep Vodafone Ghana staff’ after $900m acquisition
Alan Burkitt-Gray
February 01, 2023 12:53 PM
The Telecel group does not plan to fire staff at Vodafone Ghana, which it acquired last month for a reported US$900 million.
Nicolas Bourg, Telecel co-founder and director, said the company has “no intention of firing anyone”. He was speaking to Citi Business News.
Bourg said: “This is not how we operate at Telecel. We have proven this with different organizations that we have in different sectors … Our plan is to keep all Vodafone employees.”
Telecel, refounded five years ago after exiting the telecoms business in 2003, is closely associated with French telecoms businessman Xavier Niel. Bourg, who was CEO of the Niel Group until 2018, has been group managing partner of Telecel ever since.
Ghana’s National Communications Authority (NCA) gave its approval for Telecel to buy a 70% stake in Vodafone Ghana two weeks ago.
However the company has underperformed since Vodafone bought the company in 2017, with its market share dropping from 24.1% to 17.9%.
According to the latest NCA data, Vodafone Ghana is two points away from losing its second place in the telecoms market to AirtelTigo, which holds 16.7% of the market share. The Ghanaian government bought AirtelTigo in November 2021.
Market leader is MTN, which now controls 63.1% of the telecoms market, up 15.5 percentage points since 2017.
Telecel said it would develop its presence in Ghana, in particular through the extension of 4G coverage to allow more people to enjoy high speed internet.
The Telecel group as a whole says it plans to spend $700 million in Africa over the next five years in the fields of communications and e-commerce.
Alan Burkitt-Gray
Editor-at-large
I saw that article but I dismissed it, as it doesn't make sense, since Vodafone apparently purchased its stake in 2008, not 2017.
"On 3 July 2008 it was announced that Vodafone had agreed to acquire 70% of Ghana Telecom from the Ghanaian government at a cost of US$900 million and a total enterprise value of approximately US$1.3 billion."
https://en.wikipedia.org/wiki/Vodafone_Ghana
Hello fleccy. As is often the case,you are the only one on here, who can see anything positive. I of course, hope your faith is rewarded, time will tell? It would be good if we could just leave it to the b.o.d. , as I think they know what they are doing, or at least better than most on this forum.
many different websites many different numbers. Not sure why management is ghiding numbers even if its sold at loss.
"Hello fleccy. As is often the case,you are the only one on here, who can see anything positive."
My positivity has its limits, for example my last couple of dividend top ups have been directed at Lloyds and BT, not Vodafone, because I'm unsure if Vodafone will maintain the dividend going forward; On the other hand, I view VOD as a safe investment and I'm more than happy to hold for the long term, so no worries there.
I'm also 50/50 that a big merger may be taking shape in the background, but I'm not sure enough to go from holding to investing more in VOD.
Thank's fleccy. I like your balanced, but generally positive view. Today is the 1st fall in the sp for a while, & It can't go up every day. The Ghana sale details are unclear at the moment, but I suspect it was at a loss. Sometimes best to cut your losses, & move on. Cheers.