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Rektron And At
Canadian multinational Rektron Group Incorporated has submitted proof of its $150 million funding offer to transaction advisor KPMG, even as Ghana’s government pursues a separate merger arrangement between AT Ghana and Telecel Ghana that threatens to derail the acquisition bid.
The submission comes amid mounting tensions between Rektron and Ghana’s Communications Ministry over the future of the financially distressed state-owned telecom operator. Rektron has reaffirmed its intention to acquire a controlling 60% equity stake in AT Ghana Limited for $150 million, unveiling what it describes as a comprehensive and independently validated blueprint to save the financially distressed operator.
Rektron Co-Founder Sanjeev Tolia expressed frustration with the timing of the AT-Telecel merger announcement, describing it as “possible sabotage” of his company’s interest in the telecom operator. The Canadian firm had completed all due diligence requirements except for proof of funds when news of the merger broke.
“We are confident that KPMG did not find anything untoward about Rektron after subjecting it to a thorough due diligence process,” Tolia said, noting that his company has now submitted the outstanding financial documentation and is awaiting government direction on the way forward.
The competing interests have created uncertainty around AT Ghana’s future as the operator continues bleeding money. AT Ghana’s losses exceeded $10 million in the first eight months of 2025, while the company faces estimated liabilities of $180-200 million according to government assessments.
Communications Minister Sam Nartey George has appointed KPMG as the official transaction advisor for the proposed merger between AT Ghana and Telecel Ghana, the same firm handling Rektron’s due diligence process. This dual mandate has raised questions about potential conflicts of interest in the evaluation process.
The minister previously estimated that AT Ghana would require approximately $600 million in capital injection to return to profitability. However, Tolia disputed this figure, arguing that such amounts would only be needed over 3-4 years as the business scales, not as upfront investment.
“The figure of $600 million that has been circulated is, in our professional view, not required upfront,” Tolia explained. “Rather, such a number would only materialize in a phased manner over 3-4 years, as the business scales and network upgrades are sequenced.”
Rektron’s proposal includes significant fresh equity injection to clear and restructure debt, fund a new billing system, and modernize network infrastructure. The group’s $150 million initial offer will be injected through a mix of cash, credit lines, and guarantees, with additional funding planned after the deal’s completion.
The Canadian firm, which describes itself as having extensive Wall Street banking experience in restructuring and turnaround situations, believes its offer provides a credible path to resolving AT Ghana’s debt crisis. Tolia said creditors have expressed optimism about Rektron’s entry, viewing it as offering better recovery prospects than bankruptcy.
“From experience, creditor negotiations are best framed around the choice between zero recovery or structured recovery,” Tolia noted, emphasizing Rektron’s ability to raise additional capital from global markets if justified by business needs.
The proposed AT-Telecel merger aims to create a stronger competitor to market leader MTN Ghana, which currently holds approximately 70% market share. A merged Telecel-AT entity would command approximately 26% of market subscriptions, creating a clearer counterweight to MTN’s dominance.
However, the merger timeline remains unclear, with KPMG given a 60-day mandate as transaction advisor to evaluate options for AT Ghana’s future. The government has pledged to protect jobs, with all 300 permanent staff of AT assured of retaining employment, while the future of over 200 contract staff remains under review.
Rektron has written to both Communications Minister Sam George and Chief of Staff Julius Debrah to reaffirm its commitment to rescuing AT Ghana from collapse. The company emphasizes its global expertise and flexibility to raise additional funds when justified, positioning itself as offering not just capital but international telecommunications experience.
The Canadian firm’s timeline is ambitious, promising that within 18-24 months of closing, AT Ghana would be fully prepared for 4G launch with a clear pathway to 5G once spectrum is allocated. This includes plans for aggressive marketing to rebrand AT Ghana as a revitalized market challenger.
As the situation unfolds, Tolia indicated that while Rektron remains interested in AT Ghana, the company is “not desperate” and has no intention of becoming embroiled in lengthy litigation. The firm will continue following due process while monitoring developments in what has become a complex three-way negotiation involving the government, KPMG, and competing strategic options.
The outcome will significantly impact Ghana’s telecommunications landscape, determining whether the market sees foreign investment revitalizing AT Ghana or a domestic merger creating a stronger local competitor to international operators.
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