NITEL in $2.5bn takeover
17 February 2010
Nigerian Telecommunications Limited (NITEL) was yesterday (February 16th) taken over by New Generations Telecoms.
It is reported that the takeover was worth $2.5 billion (£1.6 billion) and has come after years of NITEL looking for an investor.
New Generations Telecoms will now hold equity worth 75 per cent, whereas previous bidders have looked to invest in the company as a whole.
Some $750 million is now thought to be paid within ten days of the bid's approval.
Vanguard reported that the government "unbundled" the sale of NITEL to encourage buyers to bid for all or part of the company.
Among the five bidders was AFZI/Spectrum Consortium, which is said to have bid $375.5 million towards NITEL.
Yesterday it was also reported that Kuwait company Zain was in talks with Bharti Airtel about the sale of its African telecommunications firm.
Though to be worth millions of pounds, a deal was expected to soon be reached.