MTC Buys Nigerian Operator

Kuwaiti telecom services provider MTC or Mobile Telecommunications Co, said on Sunday its Africa-based subsidiary Celtel had signed a conditional deal to buy 65 percent of Nigeria's Vmobile for just over $1 billion. MTC, said in a statement on the bourse Web site that the deal included an option for the purchase of the remaining 35 percent of Vmobile.

However African operator, Econet is rumoured to be planning a rival takeover bid of its own. Econet claims that it still has pre-emptive rights on any stake put on sale. Econet was a shareholder in Vmobile, but withdrew from the company following a shareholder revolt. The company has launched several court actions to try and reclaim its investment.

Vodacom, the South African operator controlled by Vodafone withdrew from its own takeover bid for the company, saying that the price was too high. Vodacom did not however rule out a later bid.

The Mobile World database reports that Vmobile ended last year with just under 4.3 million customers, giving it a 23% market share."

Posted to the site on 20th April 2006