Nigeria Working on New NITEL Privatisation Bid

Nigeria’s Bureau of Public Enterprises (BPE), the agency tasked with overseeing the privatisation of fixed line incumbent Nigeria Telecommunications (NITEL), is finalising the process for a negotiated sale of the telco, after the latest attempt to privatise the ailing company was cancelled earlier this year.

Nigerian newspaper The Punch cites a spokesman for the BPE, Mr. Chukwuma Nwoko, as saying that the bureau is working out the details for the sale of NITEL and its mobile arm M-Tel. He also confirmed that a number of potential core investors had shown interest in the exercise but declined to disclose the identity of the firms.

In the last month, initial bidder Brymedia Consortium, local firm Syntel and Microfone Telecom Nigeria, an initiative of the Nigerian Capital Development Fund, have all reportedly expressed an interest in acquiring NITEL and M-Tel.

Meanwhile, Mike Adenuga, executive chairman of Nigeria’s second national telecoms operator Globacom, allegedly approached the government to purchase a stake in NITEL via a vehicle established especially for the deal.

Earlier this month that the BPE was given government approval to embark on a negotiated sale of NITEL, after the latest attempt to privatise the firm was cancelled in June 2011 when the reserve bidder, British Virgin Islands-based Omen International, failed to meet the deadline to pay a bid security. Omen was invited to re-register its interest in buying NITEL in March 2011, as preferred buyer New Generation Telecommunications repeatedly missed the payment deadlines for its bid of USD2.5 billion.

Omen offered USD956.9 million during the latest attempt to privatise the company, held in February 2010. The government began seeking a buyer for a minimum 75% of NITEL and 100% of M-Tel in July 2009 after previous majority shareholder Transcorp divested its stake earlier in the year.

BPE Asks Omen to Confirm It's Interest in NITEL

Nigeria’s Bureau of Public Enterprises (BPE) has given Omen International, the reserve bidder for state-run telco Nigeria Telecommunications (NITEL), two weeks to confirm it is still interested in buying the ailing former telecoms monopoly, Reuters reports, citing BPE director general Bolanle Onagoruwa. 

Last month the British Virgin Islands-registered Omen consortium, which includes China Unicom and Fiber Home Technologies Limited, was invited by the BPE to re-register its interest in buying NITEL, after preferred buyer New Generation Telecommunications repeatedly failed to meet the payment deadlines for its bid of USD2.5 billion. 

Omen offered USD956.9 million for a 75% stake in NITEL and its mobile arm M-Tel during the latest attempt to privatise the company, held in February 2010, however the company has so far failed to revalidate its interest in buying the operator. 

The BPE has stated that other options for the telco include setting a minimum price for NITEL and offering it to the remaining bidders, as well as liquidating the company, or restarting the whole bidding process again. The government began seeking a buyer for a minimum 75% of NITEL and 100% of M-Tel in July 2009 after previous majority shareholder Transcorp divested its stake earlier in the year.

Nigeria Invites Omen International to Bid for NITEL

Nigeria’s Bureau of Public Enterprises (BPE) has invited Omen International Consortium, the reserve bidder for state-run incumbent telco Nigeria Telecommunications (NITEL), to reregister its interest in buying the operator, after preferred buyer New Generation Telecommunications repeatedly failed to meet the payment deadlines. 


The British Virgin Islands-registered Omen consortium, which includes China Unicom and Fiber Home Technologies Limited, submitted a bid of USD956.9 million for a 75% stake in NITEL and it mobile arm M-Tel during the latest attempt to privatise the company, held in February 2010. The government began seeking a buyer for a minimum 75% of NITEL and 100% of M-Tel in July 2009 after previous majority shareholder Transcorp divested its stake earlier in the year.


Reuters reports that the BPE has now written to Omen asking if it would be interested in revalidating its reserve bidder status. ‘If your bid is revalidated, it would give the Federal Government the right to invite your consortium or enter into negotiations to take up the offer,’ the letter said, according to a BPE statement.

New Generation’s bid of USD2.5 billion was approved in October 2010, after an investigation into the bidding process led to an eight-month delay. The New Generation consortium – which comprises Minerva Group of Dubai, Nigeria’s GiCell Wireless and technical partner China Unicom – was asked to pay a bid security of USD750 million within ten days from 25 October and was given 60 days to pay the remaining USD1.75 billion. On 5 November the bid security deadline was extended by 20 working days and subsequently to 23 December 2010, after the consortium failed to come up with the funds in time.


However, New Generation failed to meet its extended payment deadline, and in January 2011 the BPE revoked the sale to New Generation and recommended Omen be invited to acquire NITEL, following approval from the National Council of Privatisation (NCP).

Nigeria Approves Sale of NITEL To New Generation

The Nigerian government has approved the sale of ailing state-run incumbent telco Nigeria Telecommunications (NITEL) to New Generation Telecommunications, eight months after a panel was set up to review the sale process following confusion over the consortium’s ownership, Bloomberg reports.

New Generation – consisting of China Unicom, Minerva Group of Dubai and Nigeria’s GiCell Wireless – was revealed as the preferred buyer for the 75% stake in NITEL and its wireless unit M-Tel in February 2010, after beating four other hopefuls with a bid of USD2.5 billion.

However, initial confusion about China Unicom’s involvement in the consortium led to criticism that the process had been marred by irregularities and a lack of transparency.

Rather than approving the bid, the National Council of Privatisation (NCP) opted to inaugurate a committee to undertake further due diligence on the bidders of NITEL. In June 2010 the panel recommended that the deal be approved.

In a statement released yesterday the country’s privatisation body, the Bureau of Public Enterprise (BPE), announced that President Goodluck Jonathan has now approved the sale of NITEL to New Generation. The consortium has been asked to pay a bid security of USD750 million within ten days and will have 60 days to pay the remaining USD1.75 billion.

Nigeria Urged to Approve NITEL Sale

The chairman of Nigeria’s Senate Committee on Privatisation, Ayo Arise, has said the government should approve the sale of ailing incumbent fixed line operator Nigerian Telecommunications (NITEL) to New Generation Telecommunications, the consortium which emerged as the preferred buyer for the telco after bidding USD2.5 billion. ‘I do not see why we cannot go ahead [with the sale],’ Arise told Bloomberg in a telephone interview, adding: ‘The bidding process appeared to be quite transparent.’

The Bureau of Public Enterprises (BPE) announced New Generation as the preferred buyer for NITEL in February 2010, stating that the company was backed by Dubai-based Minerva, local firm GiCell and China Unicom. However, the Chinese firm quickly denied the BPE’s claims and insisted that its involvement only extended to an interest in offering technical and managerial support.

China Unicom’s denial cast a shadow of doubt on the integrity of the process, prompting President Goodluck Jonathon to form a seven-member panel in March to conduct due diligence on the bidders and investigate allegations of financial impropriety surrounding the sale process. Originally mandated with investigating the sale of NITEL within one week, the panel’s report took three months to compile after the new president reshuffled his cabinet in March.

Last month, local press reported that the panel had made two recommendations; firstly that New Generation be allowed to pay USD750 million as a deposit within ten days, and secondly that the National Council on Privatisation (NCP) negotiate with the second and third preferred bidders – British Virgin Islands-registered Omen International (which bid USD956 million) and Brymedia (USD550 million), respectively – to reach a preferred price for NITEL. However, no further decisions on the fate of NITEL have since been made public.

Nigeria Probes Nitel Bidders

Nigerian news source This Day reports that the National Council on Privatisation (NCP) has inaugurated a committee to undertake further due diligence on the bidders of ailing incumbent telco Nigerian Telecommunications (NITEL), rather than approve a USD2.5 billion bid submitted by preferred buyer New Generation Telecommunications last month. Acting president and NCP chairman, Goodluck Jonathon, has also tasked the seven-member panel with investigating allegations of financial impropriety surrounding the sale process. The committee has been given one week to submit its report to the NCP.

The government began seeking a buyer for a minimum 75% of NITEL and 100% of its mobile unit M-Tel in July 2009 after previous majority shareholder Transcorp divested its stake earlier in the year. After much delay, financial bids opened on 16 February 2010, but only six of the 14 pre-qualified consortia met the 5 February deadline for the submission of technical and financial proposals: Brymedia; AF21/Spectrum consortium; MTN Nigeria; Globacom Nigeria; Omen International; and New Generation Telecommunications. After announcing New Generation as the preferred buyer, the Bureau of Public Enterprises (BPE) revealed that the company was backed by China Unicom, a claim that was quickly denied by the Chinese company, which insisted that its involvement only extended to an interest in offering technical and managerial support.

Unicom Now Says It's Interested In Nitel, Maintains It's Not Part of New Generation

After denying any involvement in a consortium which became the preferred buyer for struggling incumbent telco Nigerian Telecommunications (NITEL), Reuters reports that China Unicom has now stated it would be interested in joining New Generation Telecommunications, but noted it never entered formal negotiations with the group. In a bid to clarify confusion over reports of its participation in the consortium, Unicom said in a statement its UK-based division Unicom Europe had been in contact with bidders taking part in the privatisation process and indicated an interest in providing technical and managerial support for the bid. The company also said it had expressed a potential interest in taking an equity stake in NITEL if certain conditions were fulfilled.

Nigeria’s Bureau of Public Enterprises (BPE) announced on 16 February that New Generation Telecommunications had become the preferred buyer for a minimum 75% stake in NITEL after beating four other firms with a bid of USD2.5 billion. Other companies with an interest in New Generation were named by the BPE as Dubai-based Minerva Group and local company GiCell Wireless. The reserve bidder was announced as Omen International (BVI), which offered USD956 million.

Minerva Group Backs Nitel Consortium

News agency Reuters reports that Dubai’s Minerva Group is the main financial backer of New Generation Technology, a consortium selected last week as the preferred buyer for ailing incumbent telco Nigerian Telecommunications (NITEL) with a bid of USD2.5 billion. After revealing the results of the bidding process, Nigeria’s Bureau of Public Enterprises (BPE) announced that New Generation was a consortium involving China Unicom, Minerva and local firm GiCell, but the Chinese company was quick to deny any involvement in the bid. GiCell’s managing director, Usman Gumi, told Reuters that China Unicom’s involvement only extended to an interest in offering technical and managerial support. ‘We have a firm commitment from our investors and partners, the Minerva Group, that we are working with. We did not pull all this out of the air,’ Gumi said in a telephone interview, adding, ‘We believe NITEL is worth the amount because of the infrastructure and potential that it has.’

The Nigerian government began seeking a buyer for a minimum 75% of NITEL and 100% of its mobile unit M-Tel in July 2009 after previous majority shareholder Transcorp divested its stake earlier in the year. Prospective investors were invited to acquire either at least 75% equity in the entire NITEL conglomerate or a stake in one or several of its components, including M-Tel, submarine fibre-optic cable division SAT-3, the company’s domestic fixed line infrastructure, its national fibre-optic transmission backbone, and its CDMA network. Financial bids opened on 16 February 2010, but only six of the 14 pre-qualified consortia met the 5 February deadline for the submission of technical and financial proposals: Brymedia; AF21/Spectrum consortium; MTN Nigeria; Globacom Nigeria; Omen International; and New Generation Telecommunications.

Unicom Denies It's Involved In NITEL Bid

China Unicom has denied that it or its state-run parent Unicom Group has any involvement in a USD2.5 billion bid for struggling incumbent telco Nigerian Telecommunications (NITEL), Reuters reports. ‘There is no involvement of this project from the parent company, the listed company or any subsidiary of the company,’ Unicom spokeswoman Sophia Tso said in a statement.

Nigeria’s Bureau of Public Enterprises (BPE) announced on 16 February that New Generation Telecommunications, a consortium involving China Unicom, had become the preferred buyer for a minimum 75% stake in NITEL after beating four other firms with a bid of USD2.5 billion. Other companies with an interest in New Generation were named by the BPE as Dubai-based Minerva Group and local company GiCell Wireless. The reserve bidder was announced as Omen International (BVI), which offered USD956 million.

China Unicom Consortium Wins Nitel Bid

Nigeria’s Bureau of Public Enterprises (BPE) has announced that New Generation Telecommunications, a consortium involving China Unicom, has become the preferred buyer for indebted incumbent fixed line operator Nigerian Telecommunications (NITEL), after beating four other firms with a bid of USD2.5 billion. Other companies with an interest in New Generation have been named by the BPE as Dubai-based Minerva Group and local company GiCell Wireless.

After the bid is approved by the privatisation council, the group will have ten days to pay 30% of the purchase price and a further 50 days to pay the remaining sum. The reserve bidder has been announced as Omen International (BVI), which offered USD956 million.

Financial bids for the privatisation of NITEL opened on 16 February 2010, but only six of the 14 pre-qualified consortia met the 5 February deadline for the submission of technical and financial proposals: Brymedia; AF21/Spectrum consortium; MTN Nigeria; Globacom Nigeria; Omen International; and New Generation Telecommunications.

The federal government began seeking a buyer for a minimum 75% of NITEL and 100% of its mobile unit M-Tel in July 2009 after previous majority shareholder Transcorp divested its stake earlier in the year. Prospective investors were invited to acquire either at least 75% equity in the entire NITEL conglomerate or a stake in one or several of its components, including M-Tel, submarine fibre-optic cable division SAT-3, the company’s domestic fixed line infrastructure, its national fibre-optic transmission backbone, and its CDMA network.

South Africa's MTN was among the bidders, but only for a stake in the SAT-3 underwater cable, for which it offered USD25 million. According to local daily Leadership, Globacom was disqualified from the process as it already holds a licence as Nigeria’s second national carrier.

Nigeria To Open NITEL Bids On 16 February

Nigeria’s Bureau of Public Enterprises (BPE) has announced that it will open financial bids for the privatisation of incumbent fixed line operator Nigerian Telecommunications (NITEL) and its mobile arm M-Tel on 16 February 2010, local newspaper This Day reports.

According to the BPE, only six of the 14 pre-qualified consortia met the 5 February deadline for the submission of technical and financial proposals, and will therefore be able to submit bids for the minimum 75% stake. The successful candidates are: Brymedia; AF21/Spectrum consortium; MTN Nigeria; Globacom Nigeria; Omen International; and New Generation Telecommunications (formerly known as Telefonica Consortium).

The federal government began seeking a buyer for a minimum 75% of NITEL and 100% of its mobile unit in July 2009 after previous majority shareholder Transcorp divested its stake earlier in the year. The original deadline for the submission of technical and financial bids was 2 October 2009, but this was pushed back to 26 October due to the complexity of the process, and then again to 5 February 2010 to allow for additional time for prospective investors to conclude due diligence.

Prospective investors are invited to acquire either at least 75% equity in the entire NITEL conglomerate or a stake in one or several of its components, including M-Tel, submarine fibre-optic cable division SAT-3, the company’s domestic fixed line infrastructure, its national fibre-optic transmission backbone, and its CDMA network.