The Bureau of Public Enterprises (BPE) has terminated the privatisation of Nigeria Telecommunication (NITEL). The process began in 2009.
This follows the inability of the reserved bidder in the NITEL/Mtel sale transaction, Omen International Consortium, to revalidate its bid bond of $105 million. The deadline for payment was June 10.
A BPE statement yesterday said it was exploring various options to consummate the sale of the telecommunications company.
The statement said: “The Director General was emphatic in saying that while several options, which included, among others, liquidation and negotiated sale, were under consideration, the Federal Government had not yet taken a decision as to which of the options to pursue.”
The BPE said although the deadline was June 10, a grace period which expired Wednesday was given.
The BPE said: “The transaction was therefore closed.”
Nigeria is one of the world’s fastest-growing telecoms markets but the government has been trying to sell NITEL for almost a decade, struggling mainly because of the shambolic state of its fixed-lines and huge debts.
Its fixed lines have fallen to fewer than 100,000 from five times that number in 2001 and subscribers to its MTEL mobile unit have dropped to a few thousands from over one million.
Following the failure of the preferred bidder, New Generation Consortium, to pay 30 per cent security bid of its $2.5 billion bid offer, the reserve bidder, Omen, was called upon to revalidate its bid bond.
The BPE wrote to Omen in March, asking if it would be interested in revalidating its original February 2010 offer of $959 million after the preferred bidder missed several payment deadlines.
The Bureau said last Tuesday the reserve bidder had up till yesterday to come up with a $105 million bid security or the firm could face liquidation.
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BPE terminates sale of NITEL
BPE terminates sale of NITEL
NigerianEye
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Thursday, June 16, 2011
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