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Sunil Mittal-controlled telecom operator Bharti Airtel and Millicom International Cellular on Monday announced completion of a deal to combine their operations in Ghana.
The deal, executed through their respective subsidiaries, will create Ghana's second-largest mobile operator, with nearly 10 million subscribers and $300 million in revenues.
"The combined networks of the two companies will cover more than 80 per cent of Ghana's population, in particular in villages and far flung areas and serve customers with affordable world-class voice/ data services, affordable global roaming and mobile banking services," a Bharti Airtel statement said.
Airtel and Millicom will have equal ownership (that is 50:50 each) and enjoy governance rights in the combined entity.
The two will also have board representations and management positions in the merged entity.
"The Ghana National Communications Authority (NCA) granted approval for the merger proposal early this month," the statement added.
Roshi Motman, the current CEO of Tigo Ghana, will be the new CEO of the joint entity.
The statement further said that "the merged entity will be deconsolidated and treated as a strategic asset in the form of a joint venture and the company will continue to operate both brands - Airtel and Tigo".
On the timelines, the statement said that the process of business consolidation will take place "over the next few weeks".
The two companies expect significant synergies from this merger to enable the combined entity achieve profitability and cash-flow levels faster.