Nigeria’s privatisation agency has given the runner-up bidder for the privatisation of 75% of telecoms incumbent Nitel two weeks to resubmit its interest, Reuters reports quoting the head of the agency on 13 April.
In March, the Bureau of Public…
Nigeria’s privatisation agency has given the runner-up bidder for the privatisation of 75% of telecoms incumbent Nitel two weeks to resubmit its interest, Reuters reports quoting the head of the agency on 13 April.
In March, the Bureau of Public Enterprises (BPE) said it had written to Omen International to invite it to re-validate its reserve bidder status after the frontrunner missed several payment deadlines.
But having not received any answer, BPE Director General Bolanle Onagoruwa reportedly said on 13 April that the reserve bidder must reconfirm its bid within the next two weeks.
If it fails to do so, the BPE has several options. Onagoruwa reportedly said that it could: set a minimum price and offer it to the remaining bidder; liquidate the operator; or restart a new bidding process.
On 16 February 2010, the Omen International consortium emerged as the reserve bidder with an offer at US$956m, a status which was valid for six months until 15 August.
New Generation Telecommunications, a consortium of local rural operator GiCell Wireless, Dubai-based investment firm Minerva Group and China Unicom, became the preferred bidder after offering US$2.5bn for the stake.
But on 21 December, New Generation missed the third deadline it was given to make a first payment of US$750m.
Headquartered in the British Virgin Islands, Omen is a consortium including China Unicom and Fiber Home Technologies Limited.
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 BPE was not available for comments before press time.
