VODAFONE Group Plc, the world's biggest mobile-phone company, agreed to buy a 70-percent stake in Ghana Telecommunications Co from the government for US$900 million to expand in one of Africa's fastest-growing markets.

The deal values Ghana Telecom at about US$1.3 billion and the government of Ghana will retain a 30-percent stake, Newbury, England-based Vodafone said in a statement yesterday.

Ghana Telecom posted 2007 earnings before interest, taxes, depreciation and amortization of US$42 million on sales of US$290 million, Vodafone said.

Vodafone has expanded in emerging markets in the past two years with acquisitions in Turkey and India, after slower growth in Europe hurt investor confidence. Vodafone had 252 million customers at the end of 2007, of which 106 million were in growth markets in eastern Europe, the Middle East, Africa and Asia, according to Bloomberg News.

"Ghana is one of the most attractive markets in Africa with mobile subscribers growing at more than 55 percent per annum and mobile penetration around 35 percent," Vodafone Chief Executive Officer Arun Sarin said in the statement.

Vodafone said Ghana Telecom will invest US$500 million over the next five years in its operations and network.

As part of the deal, the government has agreed to transfer its fiber-network assets to Ghana Telecom.

The purchase still needs approval from the Ghanaian parliament, Vodafone said.