NATCOM Pays $176,575,700 for NITEL

The preferred bidder for Nigerian Telecommunications Limited, NATCOM Consortium, has paid $176,575,700 (N29, 696,469,600) as the outstanding amount for the acquisition of the Federal Government-owned company.

The amount represents the outstanding 70 per cent of the $252,521,000 bid price for the acquisition of the assets and business units of NITEL and its mobile subsidiary, the Nigerian Mobile Communications Limited.

The Bureau of Public Enterprises in a statement by its Head of Public Communications, Mr. Chigbo Anichebe, in Abuja on Friday said NATCOM had paid the 70 per cent balance on Thursday.

He said the payment came four days ahead of the April 7 deadline set for the payment of the outstanding amount.

NATCOM had on January 6 paid $75,756,300 (N12, 727,058,400), being 30 per cent of the bid price in line with the offer letter by the BPE.

The bureau had mandated NATCOM to make an initial deposit of 30 per cent of the bid price not later than 14 days from the date of the offer letter.

The National Council on Privatisation had at its meeting on February 27, 2012, approved the privatisation of NITEL and MTEL through “guided liquidation”.

The strategy was adopted by the council after due consideration of other options and previous failed attempts by the BPE to privatise NITEL and MTEL through strategic core investor sale and negotiated sale strategies, and the huge liabilities to creditors to the tune of over N300bn.

Under the guided liquidation strategy, all the core assets and business undertakings of NITEL and MTEL were to be sold to a qualified bidder by the liquidator under the general guidance of the NPC.

Consequently, advertisements for the submission of Expressions of Interest from prospective bidders for the acquisition of the assets and business undertakings of NITEL and MTEL were placed in both local and international print media by the liquidator.