Nigerian Transcorp Bids $750 mln for Stake in Nitel

Posted 03 July 2006 @ 08:57 pm EET     Print     Reprint     E-Mail     Comments

Abuja (Reuters) - Nigerian industrial conglomerate Transcorp has offered $750 million for a 75 percent stake in loss-making state telephone firm Nitel, the privatisation agency said on Monday.

The technocratic Bureau for Public Enterprises (BPE) said the sale was subject to approval by the National Council on Privatisation. If it goes through it will be Nigeria's biggest privatisation. Two previous attempts to privatise Nitel failed.

Transcorp has to pay the first instalment of $500 million within seven days and the balance of $250 million within 60 days or forfeit the bid, said Mohammed Ibrahim, vice chairman of the BPE's technical committee. Transcorp has Britain's BT Group Plc as a technical partner, while Abu Dabi-based Emirates Telecommunications Corp. (Etisalat) is a technical and equity partner after withdrawing a separate bid for Nitel, officials said.

Transcorp was set up in 2005 by a group of corporate moguls with President Olusegun Obasanjo's support to promote Nigerian industry and trade. It has snapped up assets including oil blocks and the Hilton Hotel in the capital Abuja and has drawn some accusations of cronyism, which the government denies.