Nigeria-based Snytel Communications has agreed a set of partnerships to allow it to acquire a 75% stake in the Nigerian incumbent NITEL, according to local media reports.
Local newspaper This Day reported that Snytel and Ericsson have finalised a…
Nigeria-based Snytel Communications has agreed a set of partnerships to allow it to acquire a 75% stake in the Nigerian incumbent NITEL, according to local media reports.
Local newspaper This Day reported that Snytel and Ericsson have finalised a technical partnership agreement, which will see the Swedish vendor giving technical assistance to NITEL.
This Day also reported that Snytel has agreed with a US financial consortium, DKAI, to provide more than US$5bn in funding for investment purposes in the Nigerian telecoms industry, of which US$1bn would be used specifically for the acquisition of NITEL.
According to the report, Snytel CEO Precious Elekima confirmed the existence of an agreement with Ericsson and the deal with DKAI, adding that the shape of the transaction was still under discussion. It could come as a JV/partnership, a concession, or an outright acquisition of the 75% stake.
Ericsson would not confirm an agreement with Snytel.
“What we can say is that Ericsson has long term interests in the development of the Nigerian telecommunications industry and as the industry leader, we are in negotiations with a number of customers all over the world,” it said.
Previous plans for a sale of the 75% stake in NITEL were shelved in June after the reserve bidder, a consortium of China Unicom and Fibre Home Technologies, failed to make the first payment of US$105m for the 15 June deadline.
Nigerian President Goodluck Jonathan had said he was now choosing a “willing buyer, willing seller” model for the privatisation of NITEL after the deal with China Unicom and Fibre Home fell apart.
BNP Paribas and Eledas Capital Partners are advising the Nigerian authorities on the deal.
