Nigerian rural operator GiCell, which is part of the consortium that won the tender for a 75% stake in the country’s telecoms incumbent Nitel, has requested a 30-day extension for the first payment, Reuters reports.
In October Nigeria approved the…
Nigerian rural operator GiCell, which is part of the consortium that won the tender for a 75% stake in the country’s telecoms incumbent Nitel, has requested a 30-day extension for the first payment, Reuters reports.
In October Nigeria approved the US$2.5bn bid of the consortium, eight months after it was submitted, but on the condition that the investor brought US$750m within the next 10 days and the rest within 60 days. The first payment was due on November 5.
GiCell managing director Usman Gumi told Reuters that since the authorities took eight months to give their approval to the bid, the consortium’s financial partners had developped cold feet and needed to be reassured about their investment security.
On February 16, the Bureau of Public Enterprises (BPE), which serves as the secretary of the National Council on Privatisation (NCP), announced that New Generation Telecommunications, a consortium of GiCell Wireless, Dubai-based investment firm Minerva Group and China Unicom, had offered US$2.5bn for a 75% stake in the telecoms incumbent, a sum more than twice as high as the runner-up.
This fabulous figure and China Unicom’s initial denial of any involvement before admitting being part of New Generation led the authorities to decide to carry out an investigation about the identity of the bidders.
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 BPE.
Neither the authorities nor GiCell were immediately available for comments.
