Natcom wins Nitel takeover with bid of USD 252 mln

The Natcom consortium has won the bidding to acquire Nigerian Telecommunications (Nitel) and its mobile unit Mtel with an offer of USD 252.5 million.

The preferred bidder must still get the approval of the National Council on Privatisation (NCP) and be able pay the sum within a specified time to seal the deal. If all the conditions are met, the transaction would mark an end to years of attempts to privatize Nitel.

The Nettag consortium, the other group qualified for the bidding, was disqualified for failure to enclose a bid bond stipulated by the Bureau of Public Enterprises. The government had initially rejected a USD 221 million bid from Natcom before the company increased the bid to USD 252 million.

Natcom's shareholders include Natspace Telecommunication Investment, PCCW Global and Prime Union Investment. Other members of the consortium are Prime Union Investment, Olutoyl Estate Development & Services, Sahara Energy Resources, Legal Resources Alliance & Co and Ericsson Nigeria.