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Real Estate

Business News of Monday, 23
April 2007

Ghana Telecom is now 100% State Owned

...Govt Paid Telekom Malaysia
$100m
Telekom Malaysia(TM) has completed the sale of its 30
percent interest in Ghana Telecom. The government of Ghana(GoG),
which holds the remaining 70 percent of the company is now the sole
owner.

According to a source familiar with the case, after an
arbitration settlement, GoG agreed to pay $100 million to TM and its
minority Ghanaian partners, G-Com, to buy back their 30% stake in
GT, which they paid $38 million for November 1996. Half of the
amount was paid sometime last year and the rest paid of last week.

In a statement on April 20, TM said: The company received the
settlement sum due to it by the GoG for the transfer of its 30%
stake in Ghana Telecommunications Company Ltd (GT). The settlement
sum was fully paid in accordance with the terms of the settlement
documents executed by the parties involved.

TM had previously announced that the fair market value of the 30%
stake in GT, was US$52.2 million, as determined by an independent
expert valuer.

TM said with the completion of the settlement payment and the
fulfilment of other applicable conditions, the ownership of the 30%
stake in GT would be transferred to GoG.

Since 2003, the government of Ghana has been locked in a bitter
dispute with TM.

In 1997 the state sold a 30% stake in GT to the G-Com consortium,
in which Telekom Malaysia (TM) holds an 85% stake, for USD38
million. TM was given a five year management contract to run the
company for the duration of GT's fixed line duopoly with new entrant
Westel. By the time of the contract's expiration TM presided over a
poorly configured network, with just 275,000 fixed lines in service,
well short of its mandated 400,000.

The new government declined to renew TM's deal and put the
management of the company out to tender. Relations between the state
and TM deteriorated to the point where the Malaysian company
attempted to sell its stake back to the government and to recover
the deposit it had paid for the holding, as well as a significant
amount in damages for what it terms 'unfair treatment'.

The government said that once the dispute was resolved it would
buy back TM's stake and float it on the Ghana Stock
Exchange.

Source:
GHP

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