NATCOM Consortium, a special purpose vehicle has emerged the preferred for the Nigerian Telecommunications Limited (NITEL) and Nigerian Mobile Telecommunications Limited (Mtel), its mobile subsidiary after offering $252.5 million for the beleaguered national carrier.
The preferred bidder would however have to get the approval of Vice President Namadi Sambo chaired National Council on Privatisation (NCP) and must be able pay the sum within a specified time to seal the deal.
And if all the conditions are met, the transaction would mark an end to years of twists and turns in the attempt to privatize NITEL and Mtel.
At the opening of the bid Wednesday, NETTAG Consortium, the other firm that had been prequalified for the exercise, was disqualified for failure to enclose a bid bond stipulated by the Request for Proposal prepared by the Bureau of Public Enterprises (BPE).
The federal government had initially rejected a $221 million bid from NATCOM before the company increased the bid to $252 million.
NATCOM is an SPV formed for the purpose of acquisition of NITEL and M-Tel. The consortium is made up of shareholders – NATSPACE Telecommunication Investment Limited, PCCW Global Limited and Prime Union Investment Limited.
Other members of the consortium are Prime Union Investment Limited, Olutoyl Estate Development & Services Limited, Sahara Energy Resources Limited, Legal Resources Alliance & Co and LM Ericsson Nigeria Limited.
With the exception of LM Ericsson Nigeria Limited, all the other members of the consortium are equity holders with Prime Union and Olutoyl Estate holding 30 per cent equity each. LM Ericsson is a technical partner to the group.
Benjamin Dikki, director general , BPE at the event recalled that the reform and liberalisation of the Nigerian telecommunications sector has made tremendous success, however said that the privatisation of NITEL and Mtel has be unsuccessful.
He expressed hope that highest bidder would not only meet the deadline for payment of the purchase consideration, but would deploy the required resources to rehabilitate and grow the companies.
Mrs Omobola Johnson, minister of Communications Technology, also said the privatisation of these two companies would be a final step in the the reforms of the telecoms sector.
“The privatisation of NITEL and MTEL is the final step in the reform of the telecoms sector.
“It is our fervent hope that today’s event would lead to the final emergence of a qualified bidder with the requisite technical expertise and financial resources to transform the two companies in line with the vision of government,” she said.