After eight months of hesitation, Nigeria has finally approved the sale of 75% of fixed-line operator Nitel for US$2.5bn, but on the condition that the winning consortium brings US$750m within the next 10 days and the rest within 60 days, according to…
After eight months of hesitation, Nigeria has finally approved the sale of 75% of fixed-line operator Nitel for US$2.5bn, but on the condition that the winning consortium brings US$750m within the next 10 days and the rest within 60 days, according to media reports.
On February 16, the Bureau of Public Enterprises (BPE), which serves as the secretary of the National Council on Privatisation (NCP), announced that New Generation Telecommunications – a consortium comprising local rural operator GiCell Wireless, Dubai-based investment firm Minerva Group and China Unicom -had offered US$2.5bn for a 75% stake in the telecoms incumbent, a sum more than twice as high as the runner-up.
This fabulous figure and China Unicom’s initial denial of any involvement before admitting being part of New Generation led the authorities to decide to carry out an investigation about the identity of the bidders.
Omen International offered US$956m, while Brymedia Consortium offered US$551m and the AFZI/Spectrum Consortium offered US$375m. MTN Nigeria Communications offered US$25m for SAT-3.
BNP Paribas and Eledas Capital Partners are advising BPE.
Neither the authorities nor the buyers were available before going to press.
