Daily Independent Online.
*
Monday, July 12, 2004.
Vodacom, NewTel, Chagouris in secret race
•
Mandela’s in-law, Mbeki’s brother team up
By Shina
Badaru
IT.Telecom Editor
NewTel, a consortium of influential Nigerians and South
Africans, is among companies putting finishing touches to vie in a
yet-to-be-unveiled plans by the government to sell its 51 per cent shares in
national carrier, the Nigerian Telecommunications Limited (NITEL).
Also in the quest is Vodacom, the South African cellular
operator which recently made an unsuccessful bid for 51 per cent stakes in
Nigeria’s number two mobile operator, Vmobile.
NITEL boasts the most expansive telecoms network in the
country.
It was learnt that the Federal Executive Council (FEC)
recently rejected a N55 billion turn around proposal by the Ministry of
Communications to inject a new lease of life into NITEL, on the grounds that
fresh initiatives to sell government shares may be announced this month.
A conditional proposal by British Telecom (BT) to turn it
around through a nine-month management contract is also under review.
BT will have insight into the processes and operations of
the carrier. It proposed this as a condition to understanding the inner
workings of NITEL initially rather than expressing outright interest in its
acquisition.
The BT offer may not find favour because of the conditions
attached to it, according to sources.
However, another UK-based operator, Vodafone, a major
shareholder in Vodacom, has also expressed interest in doing business in
Nigeria. It is keen on M-Tel, the cellular arm of NITEL, because of the rapid uptake of cell phones in the
market.
Last month, Vodacom Group Chief Executive Officer Alan
Knott-Craig said the company cannot ignore the fast-growing Nigerian market in
its desire to become a major player on the continent, despite its failed bid
for Vmobile. It is exploring the
NITEL route to return to Nigeria and is said to have opened talks with
government officials, including those of the Nigerian Investments Promotion
Council (NIPC), to actualise the agenda.
But sources said the N55 billion proposal forwarded to the
NIPC by Communications Minister Cornelius Adebayo was rejected at a recent FEC
meeting, which cited the need to move forward with the privatisation of NITEL.
Besides, a Singaporean firm, which has also indicated
interest to acquire NITEL, recently forwarded a proposal to the government.
Senior members of the company recently met with Adebayo and Presidency
officials in Abuja.
Fresh moves have also been initiated by the Chagouri family
for stakes in the company after futile attempts to challenge the revocation of
the cellular licence issued to Motophone during the Sani Abacha regime.
Motophone is owned by the Lebanese Chagouri family and was
highly favoured during the Abacha junta. Motophone’s interests were
pushed by Eric Chamchoun, its Managing Director and Ambassador-at-Large to the
Republic of Niger.
The renewed bid by the Chagouris is understood to have
emanated after agreeing to concessions under which the family may drop its
lawsuits against the government over its revoked GSM licence.
Regardless, the NewTel consortium has begun to consolidate
its advantage by including in its team high networth South Africans eyeing
stakes in Nigeria, a country regarded by the international investment community
as Africa’s fastest growing telecoms market.
NewTel participated in previous bids for NITEL without
success and may have restructured its team to sharpen its edge in the planned
sale.
It is expected to feature Kwame Amuah, Chairman of the team
as well as son-in-law to former South African President Nelson Mandela. Amuah,
who participated actively in South Africa’s controversial second national
operator (SNO) bid, may be lining up for the bid with Moletsi Mbeki, brother of
South African President Thabo Mbeki.
Also part of the NewTel team are Tokunbo Sijuade, son of
the Ooni of Ife, Oba Okunade Sijuade; Amuah’s advisor Andre Gyenifie;
Lagos lawyer Seye Kosoko and Seye Oladapo, a Director in National Bank of
Nigeria who doubles as Financial Director of the group. And the Chagouris are
expected to feature in the reconstituted NewTel Consortium.
The last attempt by the government to sell NITEL failed in
November 2001 when Investors International (London) Limited, which emerged the
preferred bidder offering $1.317 billion, could not raise funds for the 51 per
cent stakes. It over bid Telnet ($1.31 billion and NewTel ($1.31 billion).
Following
the development, the government aborted the idea of outright sale in favour of
a management contract with Dutch company Pentascope International to turn
around NITEL to enhance its value in a future privatisation.
