Canadian energy and infrastructure company Rektron Group has announced its potential strategic acquisition of a majority stake in operator AT Ghana.
In the announcement, made last week, Rektron proposed a strategic alliance that would involve plans to acquire a 60% majority equity stake in the company formerly known as Airtel Tigo.
The acquisition is important for Rektron, which says that it signifies its diversification into the telecommunications sector and, it claims, highlights its dedication to propelling infrastructure development, broadening connectivity and catalysing digital advancement across Africa.
But what can it offer AT Ghana, a telecommunication company wholly owned by the government of Ghana since 2021 that provides a broad spectrum of dynamic telecommunication services including voice, data, mobile financial services, and business connectivity solutions, and whose mobile network serves over 2.3 million users?
The Ecofin news agency points out that AT has faced challenges since its 2021 nationalisation, losing market share to dominant players MTN and Telecel. Official figures suggest a market share that has dropped from 25.82% in October 2018 to 7.89% by December 2024, well behind MTN’s 73.96% and Telecel’s 18.14%.
AT also faces significant financial issues, with debts said to reach 3.5 billion cedis (US$342.4 million) as of March 2024.
Rektron suggests that the deal will accentuate its own ability to generate stable cash flows and deliver long-term value. In addition, by leveraging Rektron’s strategic vision and operational expertise, the company suggests that this partnership is poised to accelerate AT Ghana’s trajectory of sustainable growth.
Indeed, Rektron argues that the rapidly expanding digital landscape in Ghana presents significant growth opportunities for advanced telecommunications services, financial inclusion, and digital connectivity solutions.
The government of Ghana has apparently expressed strong support for the acquisition. However, as ever, the conclusion of the acquisition remains subject to certain conditions.
