Nigeria’s National Council on Privatization (NCP) has appointed a liquidator in order to push the sale of state-owned telco Nitel via a “guided liquidation”, the federal government reportedly announced.
The liquidator has six months to set up the…
Nigeria’s National Council on Privatization (NCP) has appointed a liquidator in order to push the sale of state-owned telco Nitel via a “guided liquidation”, the federal government reportedly announced.
The liquidator has six months to set up the process.
Previous attempts by the government to privatise the struggling company and its mobile subsidiary M-Tel failed. In early 2012, the NCP decided to try and sell the company again.
The government chose the liquidation route because proceeds from the sale are expected to be less than the value of its debt load, estimated at around NgN400bn (US$2.5bn), a spokesman for the NCP told Reuters.
The liquidation process will also reportedly protect the government from future liabilities. Once privatised, Nitel will be debt free meaning the creditors will take on a loss.
Three companies were invited to bid for Nitel several weeks ago, according to reports at the time. Earlier, in August last year, 35 prospective investors had expressed their interest in the carrier but only three recently pre-qualified after scoring 75% and above in terms of requirements for the acquisition.
Neither the names of the bidders nor the timing for the final bids have been disclosed.
The NCP did not respond to requests for comment.
