Transcorp Will Continue to Manage Nigeria Telecom

IBADAN, Nigeria -(Dow Jones)- Transnational Corp. of Nigeria, or Transcorp, will continue to manage the Nigeria Telecommunications and its subsidiary, Mobile Telecommunications, until a core investor is found to take over both companies, a government spokesman said Monday.

The government and Transcorp have been discussing the future of NITEL and MTEL following the government's recent reversal of their sale to Transcorp.

Transcorp bought a 75% stake in 2006 in both companies for $750 million during a privatization sale. It could only pay $500 million and acquired 51% stakes in both companies. The government held the remaining 49%.

John Odey, minister of information and communications, said on national television that the government and Transcorp met in Abuja on Monday to continue discussions on NITEL and MTEL, adding that an agreement was reached to include a core investor under a new arrangement.

He said it was agreed that Transcorp will continue to hold 51% in NITEL and MTEL and manage the organization until a new core investor is found.

Odey assured key shareholders, especially investors and employees of both companies, of "our resolve to protect their interest and welfare as we work to make both companies attractive to potential technical partners."

NITEL is Nigeria's leading national carrier, but had only about 400,000 working fixed lines before it was privatized in 2006. It faced stiff competition from private mobile-phone providers in Nigeria, including MTN and Glomobile. There are now about 40 million mobile-phone subscribers in the country, with room for expansion.

-By Obafemi Oredein; Dow Jones Newswires; 234 2 7510489

(END) Dow Jones Newswires

Posted to the site on 4th March 2008