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Uncertainty over Transcorp NITEL bid

Posted by From GODWIN TSA ABUJA on 2006/07/14 | Views: 446 |

Uncertainty over Transcorp NITEL bid


The ten days grace period given to Transnational Corporation of Nigeria(TRANSCORP) to pay the first tranche of $500 million bid price for 75 per cent equity share of Nigerian Telecommunications Limited and its subsidiary, Nigerian Mobile Telecommunica-tions (MTEL) expired yesterday amidst uncertainty over whether or not the company was able to pay or not.

• We’ll beat deadline – Firm’s spokesman

The ten days grace period given to Transnational Corporation of Nigeria(TRANSCORP) to pay the first tranche of $500 million bid price for 75 per cent equity share of Nigerian Telecommunications Limited and its subsidiary, Nigerian Mobile Telecommunica-tions (MTEL) expired yesterday amidst uncertainty over whether or not the company was able to pay or not.

As at press time yesterday, Daily Sun could not categorically confirm whether Transcorp has been able to pay the New York-based Standard Chartered Bank which is Bureau of Public Enterprises(BPE) official bank.

Attempt to inquire from BPE the exact position of things was fruitless as the Head, Corporate Communications of the bureau, Mr Chigbo Anichebe told Daily Sun that the deadline still remains midnight yesterday while hoping that the corporation may still redeem its pledge.

However, Vice President, Corporate Communications of Transcorp, Mr Adedayo Ojo in a telephone interview last night told Daily Sun that his organisation was going to beat the deadline.
"Our man is on his way to Abuja now. As I am talking to you, he has left for Abuja. We will meet the deadline. The deadline is 12 midnight," Ojo said.
After three failed attempts to sell NITEL/MTEL, the ailing company wobbled into the hands of Transcorp which is an indigenous corporation.

Before now, the road to disposing of the giant, old and weak company has been tortuous
beginning from Investors International Limited of London(IILL) which, however, failed to pay the $1.317billion it offered. The government decided to give it to Pentascope of Netherlands on a management contract basis. The company's performance was below acceptable level and the government decided to terminate the contract.

Last December, the privatisation of the first National Carrier was stepped up with Orascom Telecoms offering $256.53 million. The offer, was, however, considered far below the reserved price of the government, hence it was rejected, giving way for another round of privatisation process.
This time, BPE decided a negotiated sale and after due verification of the technical
competence of Transcorp, it was offered to it at $750 million(N105billion) and a seven-day deadline was given to the corporation to pay $500 million for the first tranche while the second tranche was expected at the end of 90 days.

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Fay(Katy, Texas, US)says...

Actually translates to bravehearted.