Spanish firm acquires NITEL for $2.5bn

Date: 18-02-2010 8:28 pm (14 years ago) | Author: Daniel Bosai
- at 18-02-2010 08:28 PM (14 years ago)
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Quote
Both Nigeria Telecommunications (NITEL) and its subsidiary, Mtel, were on Tuesday resold to a Spanish outfit, New Generation Telecommunications Consortium, for $2.5 billion.

That seemed to have finally settled the fiasco of the original sale to Transcorp, which the Bureau of Public Enterprises (BPE) revoked last year.

The new deal came to light in Abuja at the financial bids opening, where five firms slugged it out to get the first national carrier.

During the initial bidding, MTN offered to buy NITEL’s SAT-3 for $25 million, Brymedia Consortium offered $100,000.

New Generation Consortium offered to pay $333,333.33 plus the total liabilities of NITEL, AFZI Telecom Consortium tabled $173,333.33 excluding CDMAs.

Omen International (BVI) offered $350 million, including CDMAs, but without NITEL’s liabilities.

Before the process was halted for the bidders to raise their stakes, Privatisation and Commercialisation Technical Committee Acting Chairman, Taiwo Osipitan, announced that NITEL was being sold without any liability attached.

He urged the bidders to improve on their offers.

On resumption of bidding, MTN stuck to its $25 million offer for SAT-3. But Brymedia jerked up its bid for NITEL to $551 million, Omen International did with $956.998 million, New Generation Consortium put $2.5 billion on the table, and AFZI jerked up its stake to $375 million.

Osipitan declared New Generation Consortium as the preferred bidder, and Omen International the reserved bidder, subject to the approval of the National Council on Privatisation (NCP).

He said Globacom was dropped from the process because it could not meet the requirements.

BPE Director General, Christopher Anyanwu, had earlier charged the investors to ensure that they possess the financial strength to take NITEL to greater heights.

Senate Privatisation Committee Chairman, Sylvester Anyanwu, expressed hope that the sale would improve NITEL and the entire telecommunications sector.

He charged New General Consortium to buckle up for the challenges in NITEL, whose infrastructure must not be allowed to decay.

Last year, the BPE revoked the sale of NITEL to Transcorp, with Anyanwu citing breaches of the sale agreement.

Source: Daily Independent


Posted: at 18-02-2010 08:28 PM (14 years ago) | Addicted Hero
- famous5 at 18-02-2010 08:43 PM (14 years ago)
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this is a welcome development cuz this will call for more competition in the telecom industry
Posted: at 18-02-2010 08:43 PM (14 years ago) | Gistmaniac
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- enogieru at 18-02-2010 09:49 PM (14 years ago)
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its a good news to nigerians instead of allowing the industry to decay........nice bid,hope to see the new developement....God bless Nigeria. Grin Smiley Grin
Posted: at 18-02-2010 09:49 PM (14 years ago) | Upcoming
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- mocky at 18-02-2010 10:10 PM (14 years ago)
(m)
I thank God eor new develomen!
Posted: at 18-02-2010 10:10 PM (14 years ago) | Newbie
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- omatu at 19-02-2010 12:33 AM (14 years ago)
(f)
To God be the glory.   Now we need to give them competition to ensure that they keep customers first.
Posted: at 19-02-2010 12:33 AM (14 years ago) | Gistmaniac
Reply
- popo2009 at 19-02-2010 01:22 AM (14 years ago)
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This is the kind of things we want to hear about our dear country not bad news
More blessings to Naija
Posted: at 19-02-2010 01:22 AM (14 years ago) | Gistmaniac
Reply
- DarkCoco at 20-02-2010 12:23 PM (14 years ago)
(f)
hmm..nope dis bring change

Posted: at 20-02-2010 12:23 PM (14 years ago) | Gistmaniac
Reply
- DarkCoco at 20-02-2010 12:23 PM (14 years ago)
(f)
*hope*

Posted: at 20-02-2010 12:23 PM (14 years ago) | Gistmaniac
Reply
- irule at 20-02-2010 01:43 PM (14 years ago)
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hmmmmm...  ok

Posted: at 20-02-2010 01:43 PM (14 years ago) | Gistmaniac
Reply
- Sholashedrak at 22-02-2010 02:22 AM (14 years ago)
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nigeria 4ward eva,backward neva.
Posted: at 22-02-2010 02:22 AM (14 years ago) | Newbie
Reply
- Phil2 at 22-02-2010 11:39 AM (14 years ago)
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 Roll Eyes  Roll Eyes  Roll Eyes
Posted: at 22-02-2010 11:39 AM (14 years ago) | Upcoming
Reply
- saintlearnray at 22-02-2010 07:28 PM (14 years ago)
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THIS WILL SURELY BRING HOPE..........SUCCESS I MEAN
Posted: at 22-02-2010 07:28 PM (14 years ago) | Newbie
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- Toks-E at 23-02-2010 01:03 PM (14 years ago)
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its abt time, my mum's land line starts ringing again Grin

Posted: at 23-02-2010 01:03 PM (14 years ago) | Addicted Hero
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- mansteve at 23-02-2010 03:31 PM (14 years ago)
(m)
this one na good news
Posted: at 23-02-2010 03:31 PM (14 years ago) | Newbie
Reply
- hackynoni111 at 3-09-2015 01:06 PM (9 years ago)
(m)
good move
Posted: at 3-09-2015 01:06 PM (9 years ago) | Gistmaniac
Reply

fire TRENDING GISTS fire

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