Nigeria has invited the runner-up bidder for the privatisation of 75% of telecoms incumbent Nitel to resubmit its interest, after the frontrunner missed several payment deadlines.
The Bureau of Public Enterprises (BPE) said it has written to Omen…
Nigeria has invited the runner-up bidder for the privatisation of 75% of telecoms incumbent Nitel to resubmit its interest, after the frontrunner missed several payment deadlines.
The Bureau of Public Enterprises (BPE) said it has written to Omen International to re-validate its reserve bidder status for the privatisation of Nitel and its mobile unit M-tel.
According to BPE’s release, it said in a letter: “if your bid is re-validated, it would give the Federal Government the right to invite your consortium or enter into negotiations to take up the offer.”
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.
New Generation Telecommunications, a consortium of local rural operator GiCell Wireless, Dubai-based investment firm Minerva Group and China Unicom, became the preferred after offering US$2.5bn for the stake.
However on 21 December, New Generation missed the third deadline it was given to make a first payment of US$750m.
The Bureau said it has written to the preferred bidder, New Generation Consortium, to inform it that its position had lapsed following its inability to pay 30% of the price as bid security.
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.
