Nigerian
Telecommunication Limited (NITEL) and Mobile Telecommunications Ltd (MTEL)
have attracted as many as 17 bidders who are attracted to their core assets in
the ongoing guided liquidation exercise of the national telecommunications
carrier.
According
to dailyindependentnig.com, BPE’s Director General Benjamin Diki, made the
disclosure to media at an interactive session on how President Goodluck
Jonathan has, through his current transformation agenda, initiated policies
that would ensure that the ongoing guided liquidation of the national telecom
carrier would open up the nation’s telecom industry for both local and
international investors to thrive.
Diki
stated that, “Efforts by President Jonathan to open up the telecom industry
have started yielding fruitful results as 17 investors have signified their
interests to buy the Nigerian Telecommunications Ltd and its mobile arm, Mobile
Telecommunications Ltd (MTEL), in the ongoing guided liquidation exercise of
the national telecom carrier.”
According
to Diki, 22 companies originally showed interest in the telecommunication
giant; however, 5 were excluded due to lateness and were not accommodated due
to strict compliance to the company’s rules.
The
remaining 17 bidders are currently being evaluated and are expected to go
through a strict approval process. This was according to Diki.
According
to dailyindependentnig.com Diki, who argued that the guided liquidation was not
outright auctioning of the various parts of the company “but that the 17
bidders would be given a chance to do due diligence, and then at the
appropriate time be asked to submit technical and financial bids.”
On the
N350 billion liabilities of NITEL, he said, “The Federal Government, in line
with the Companies and Allied Matters Act (CAMA) had sought for protection so
that the balance from liabilities would not go back to the treasury, as he
insisted that the liabilities are huge and this is why guided liquidation
option was adopted.
“We are
selling the company as a business unit that must continue doing business in the
telecoms sector, because NITEL is the first national carrier. We have done
similar things before with the AFCON, the fertiliser company, which is today
known as Notore,” he said.
Diki noted
that the government had opted for a guided liquidation option because the
expected proceeds from the NITEL would likely be less than its debts value.
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