The consortium that won the tender for 75% of Nigerian telecoms incumbent Nitel has been granted a 20-day extension to make the first payment, according to Telegeography quoting the Economic Times.
Last week, Nigerian rural operator GiCell asked for a…
The consortium that won the tender for 75% of Nigerian telecoms incumbent Nitel has been granted a 20-day extension to make the first payment, according to Telegeography quoting the Economic Times.
Last week, Nigerian rural operator GiCell asked for a 30-day extension to pay the first US$750m, which was initially due on November 4, arguing that the consortium’s financial partners had gotten cold feet after the authorities took eight months to approve the bid.
Having received GiCell’s US$2.5bn bid last February, the Nigerian state only approved it in October, and only on the condition that the investor pay US$750m within 10 days and the rest within 60 days of the decision.
This incredible US$2.5bn figure, which is more than twice as much as that of the runner-up bidder, and China Unicom’s initial denial of being involved in the deal before admitting that it was part of consortium, called New Generation Telecommunications, led to a decision by the authorities to carry out an investigation about the identity of the bidders.
In addition to GiCell, New Generation comprises Dubai-based investment firm Minerva Group and China Unicom.
Omen International offered US$956m, while Brymedia Consortium offered US$551m and the AFZI/Spectrum Consortium offered US$375m. MTN Nigeria Communications Ltd offered US$25m for SAT-3.
BNP Paribas and Eledas Capital Partners are advising the authorities.
The parties were not immediately available for comment.
