Nigerian Gov denies Nitel satellite merger

Nigeria’s Bureau of Public Enterprises (BPE) has denied reported plans to merge local satellite operator NigComsat with incumbent telco Nitel following the latter’s failed privatisation.
“I am not aware of a merger with the satellite asset”, a spokesman…

Nigeria’s Bureau of Public Enterprises (BPE) has denied reported plans to merge local satellite operator NigComsat with incumbent telco Nitel following the latter’s failed privatisation.

“I am not aware of a merger with the satellite asset”, a spokesman for the privatisation bureau told SatelliteFinance.

NigComsat already owns 15% of Nitel, and 10% of the telco’s equity is reserved for its workforce.

Reports suggesting a possible merger surfaced after the front running bidder for the remaining 75% of Nitel, a consortium of mobile operators and investment firms called NGT, missed several payment deadlines.

NGT became the preferred bidder after offering US$2.5bn for the stake, but the group was unable to pay 30% of this amount to validate its bid.

The BPE spokesman said the government has invited reserve bidder Omen International, a British Virgin Islandsheadquartered consortium including China Unicom and Fiber Home Technologies, to “revalidate” its bid.

On 16 February 2010, the Omen International consortium emerged as the reserved bidder with an offer at US$956m, a status which was valid for six months until 15 August.

Other bidders were Brymedia Consortium, which offered US$551m, and the AFZI/Spectrum Consortium, which offered US$375m. MTN Nigeria Communications offered US$25m for submarine cable SAT-3, in which Nitel has a stake.

BNP Paribas and Eledas Capital Partners are advising the authorities.

The government has reportedly been trying to privatise Nitel for more than ten years, during which the sale process has collapsed six times. NigComsat was unable to comment before the press deadline.