Russia's Altimo Expresses Interest in Nigerian Network Operator

Russia's Altimo is reported to be interested in taking a stake in Nigerian operator, M-Tel/NITEL. Altimo's Chief Executive Officer, Mr Alexey Kousmichoff is currently on a visit to Nigeria's Vice-President. Vice President, Goodluck Ebele Jonathan, yesterday assured Nigerians of Federal Government's determination to ensure that the interest of Nigerians is protected in the privatisation of M-tel/NITEL.

The Nigerian government recently retained BNP Paribas to act as adviser for the privatization of Nigerian Telecommunications (NITEL) and its mobile subsidiary, M-Tel

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 M-Tel, 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.

Altimo, along with its parent company Alfa Group, is currently involved in a number of disputes with several telecoms operators, involving disputed shares in other telecoms companies. This includes the ongoing battle with the Norwegian telco Telenor regarding the control over Vimpelcom and Kyivstar, and also the struggle against the Finnish/Swedish telco TeliaSonera over the control of the Turkish mobile company Turkcell.

Posted to the site on 19th September 2008