China Unicom has backtracked on its denial of any involvement with the sale of Nitel, confirming that its European branch has shown interest in an equity investment in Nitel.
Last week, New Generations Telecommunications gave TelecomFinance an apparent…
China Unicom has backtracked on its denial of any involvement with the sale of Nitel, confirming that its European branch has shown interest in an equity investment in Nitel.
Last week, New Generations Telecommunications gave TelecomFinance an apparent copy of its agreement with China Unicom Europe, in which the Chinese operator agrees to act as the consortium’s technical and managerial partner and take a 20% share of equity in Nitel.
However, the Chinese firm had at first denied any link with New Generation Telecommunications, which has tabled a US$2.5bn bid to acquire 75% of the Nigerian telecom incumbent.
China Unicom Europe said it would be unavailable for comment before next week.
New Generations Telecommunications consists of GiCell Wireless, a rural operator led by Usman Gumi and backed by Nigerian individuals, and Minerva Group, described as a Dubai-based diversified investment firm.
Efforts to reach Minerva have been unfruitful. However, a document disclosed by the Nigerian Bureau of Public Enterprises indicates that the group is chaired by Ahmed Abdullah and has agreed to acquire 68% of New Generation Telecommunications, for a stake of 51% in Nitel.
Gumi previously told TelecomFinance that the Dubai investors would be the main financial backers of New Generations by providing 51% of the US$2.5bn offer.
The remaining funds, he said, would come from China Unicom Europe (around 20%) and from GiCell, which plans to raise funds and secure credit agreements with banks. Partners will also include the Nigerian bank BGL, which has also acted as financial advisor to the consortium in their bid.
First of all however, the consortium needs their bid to be approved by the National Council of Privatization, the body which oversees the BPE. Once, and if, the council approves the bid, the bidders have 10 days to pay 30% of their purchase bid, and another 50 days to pay the rest.
However, an approval could drag on as the council is chaired by Goodluck Jonathan, the country’s vice president who has now been named the country’s acting president.
