NCP Sets up Committee to Probe Nitel Bidders

The National Council on Privatisation (NCP) has set up a seven-member ad-hoc committee to undertake further due diligence on the prospective investors that bid for the sale of Nigeria Telecommunications Plc and its mobile arm, M-tel.
This was the outcome of the meeting of the body, chaired by the Acting President, Dr. Goodluck Jonathan, which held at the Presidential Villa, Abuja at the weekend
The chairman of the ad-hoc committee is Prince Adetokunbo Kayode, Attorney General of the Federation, Other members of the committee are Mansur Muktar, minister of Finance; Mahmud Yayale Ahmed, secretary of the Government of the Federation,; Humphrey Abah; minister of State for Commerce and Industry, Mike Oghiadomhe, principal Secretary to the Acting President,; Mohammed Hayatu-Deen, chairman of the technical committee of the NCP, and Ms. Bolanle Onagoruwa, acting Director General of the Bureau of Public Enterprises (BPE.), The committee has seven days to submit its report to the NCP.
Recall that on February 16, 2010, the BPE opened the financial bids of the five prospective investors that were pre-qualified to bid for the acquisition of Nitel. At the event, New Generations Telecommunications Consortium bid $2.5 billion for unbundled Nitel to emerge the preferred bidder while Omen International offered $956 million for Nitel as a whole to become the reserve bidder. The other bidders were Brymedia Consortium which offered $551 million (Nitel as a whole); AFZI/Spectrum Consortium with an offer price of $375.5 million (Nitel as a whole); and MTN Nigeria Communications Ltd which bid $25 million (for only SAT-3.)
Remember that the advertisement for expressions of interest from prospective investors for the acquisition of at least 75 % equity in Nigerian Telecommunications Limited (Nitel) was published locally and internationally in July 2009.
In the advertisement, prospective investors were invited to apply to acquire either at least 75 % equity in the entire Nitel conglomerate or a stake in one or several of its components, namely, SAT-3; domestic fixed line telephony; national fibre-optic transmission backbone; CDMA network; and Mtel (GSM).
It also noted that preference would be given to bidders who desire to acquire Nitel fixed lines, transmission backbone, Mtel and SAT-3 components together while those bidding separately for Mtel must be ready to make necessary investments to detach Mtel from the Nitel networks.
At the deadline for the submission of technical and financial proposals on February 5, 2010. Fourteen prospective investors undertook virtual data room on Nitel and M-tel. The investors were MTN Nigeria Communication Ltd; Etisalat Nigeria; Brymedia (WA) Ltd; Finetek.com/Ericsson consortium; Omen International Ltd (BVI); Fugar Technologies and MTI Consortium. Others are Telefonica Consortium; Globacom Nigeria Ltd; Conau Ltd; Dansacom Technologies Ltd; Adison Consulting; AF21/ Spectrum Consortium and Foneama.com.
Six out of the 14 consortia met the deadline for the submission of the technical and financial proposals. The bidders are Brymedia (WA) Ltd; AF21/ Spectrum Consortium; MTN Nigeria Communication Ltd; Globacom Nigeria Ltd; Omen International Ltd (BVI); and New Generation Telecommunications Ltd.