Following numerous unsuccessful attempts to sell Nitel, the Nigerian telco and its mobile arm M-Tel will now be liquidated, local media reported with reference to a government official.
The decision for “guided liquidation” was made by the National…
Following numerous unsuccessful attempts to sell Nitel, the Nigerian telco and its mobile arm M-Tel will now be liquidated, local media reported with reference to a government official.
The decision for “guided liquidation” was made by the National Council of Privatisation (NCP) in light of the substantial debts the company has accumulated over the years.
The state had tried several times over the past few years to privatise the telco.
In June 2011 a sales attempt was shelved after the reserve bidder, a consortium of China Unicom and FiberHome Technologies, failed to make a first payment. The consortium had emerged as the reserve bidder with an offer at US$956m, after the frontrunner, a consortium of local rural operator GiCell Wireless, Dubai-based investment firm Minerva Group and China Unicom, missed several payment deadlines in 2010.
A “willing buyer, willing seller” approach for the sale of a 75% stake in Nitel and M-Tel, that was announced by Nigerian president Goodluck Jonathan in early July, also failed to find buyers.
