In a new attempt to turn around struggling state-owned Nitel, the government-appointed liquidator has called for potential investors to express their interest by 30 June.
For the past decade, the government has tried on several occasions to privatise…
In a new attempt to turn around struggling state-owned Nitel, the government-appointed liquidator has called for potential investors to express their interest by 30 June.
For the past decade, the government has tried on several occasions to privatise the operator, its mobile subsidiary M-Tel and an international submarine cable, Sat-3.
In early 2013, the National Council on Privatisation decided to sell the company again via a liquidation route.
A few months later, in July, three companies were reportedly invited to bid for Nitel after scoring 75% and above in terms of requirements for the acquisition. At the time, the names of the suitors had not been disclosed.
Nigerian consortium Brymedia later emerged as an interested party but it remains unclear whether the group is still looking to buy the operator.
According to an advert published by the liquidator yesterday, interested bidders must have at least five years of telecoms experience and a net worth of more than US$200m.
Prequalified applicants will be informed on 17 July and the deadline for submission of technical and financial proposals is around 15 August. The transaction is expected to close in December.
The liquidator also stressed that Nitel and M-Tel, as well as some of their assets, can be sold separately. Suitors interested in Nitel must have at least one million subscribers on their fixed network while those applying for M-Tel will need at least 10 million subscribers on their mobile network.
The government chose the liquidation route last year because proceeds from the sale are expected to be less than the value of its liabilities, estimated at around NgN400bn (US$2.5bn).
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.
A ‘willing buyer, willing seller’ approach for the sale of a 75% stake in Nitel and M-Tel, announced by Nigerian president Goodluck Jonathan in early July 2011, also failed to find a buyer.
Nigeria is currently home to nine mobile operators, with M-Tel being the smallest.
