Nigeria Retains BNP Paribas As Adviser for Telecom Sale
IBADAN, Nigeria -(Dow Jones)- Nigeria has retained BNP Paribas to act as adviser for the privatization of Nigerian Telecommunications and its subsidiary Mobile Telecommunications, the minister of state for information said Monday.
Minister Ibrahim Nakanda said the National Council on Privatization, chaired by Vice President Goodluck Jonathan, approved BNP Paribas as adviser for the sale of both companies. Last month, BNP Paribas won the bids to provide advisory services for the privatization of NITEL and MTEL during the bidding process involving it and three other firms short-listed for the bidding exercise.
The privatization adviser is expected to review the operations of NITEL and MTEL, prepare valuation reports indicating the base price for NITEL and market NITEL/MTEL to prospective investors.
In 2006, Transnational Corp. of Nigeria paid $500 million to acquire 51% in both companies, while the government held the remaining 49%. However, Transcorp was unable to properly fund operations.
The government and Transcorp in February 2008 agreed to bring in a new core investor into both companies, with a 51% stake. Under the new arrangement, Transcorp will shed 29% of the 51% it is currently holding in NITEL and MTEL, while the government will shed 22% of the 49% holding.
The new core investor, according to the government, will have the required technical, managerial and financial resources to take over the management of the two companies from Transcorp.
Companies from Egypt and South Africa, and the Vodafone Group have indicated interest in bidding for NITEL/MTEL.
-By Obafemi Oredein, Dow Jones Newswires; 234 2 7510489
(END) Dow Jones Newswires
Posted to the site on 26th August 2008
