MERGERS, ACQUISITIONS AND FINANCIAL RESULTS
Nigeria: Zinox Acquires Enugu Coal-City Wifi
Zinox Telecoms has taken over control of Enugu Coal-City Wifi project following a buyout of the Enugu State Government in a Joint Venture between the state and Zinox Telecoms at a cost of over N140 million. The buyout deal of 80 per cent share gives Zinox Telecoms the opportunity to connect the next 30 million unserved Nigerians in rural areas of the state to the Internet.
With the acquisition, Zinox Telecoms is now solely responsible for the implementation of the Coalcity-Wifi in support of the vision of the Enugu State Government. Announcing the new deal, Chief Operating Officer of Zinox Telecoms, Theophilus Nweke, said: "At the moment the network has been demobilised to enable the management of Zinox Telecoms do a system -capacity and inventory audit and re-strategise on how best to run the network in a capital city with few major industries. We want to make sure that at the end of the day we do not totally compromise the social responsibility minded intentions with which we launched the partnership even though we have bought out the Enugu State Government."
The network, he added, remained the fastest, clutter and stress free network in Enugu and that Zinox would upgrade the network systematically on the basis of supply and demand, and would generally ensure that the Coalcity Wifi offers the best platform to those living in the capital city.
Nweke said he would have to resubmit a fresh proposal to the Board to enable her take decisions on how best to build a customer base that is not purely commercial driven as initially agreed with the state government, without compromising quality. "We are concerned more in providing poor families with global access at N10,000 per annum in order to facilitate Enugu as the knowledge hub of the South East."
Zinox Telecoms, which pioneered super Wifi in Africa in support of her parent company, Zinox Technologies, had earlier entered a joint venture with Enugu State Government, but the partnership could not inject enough capital to meet with a sudden surge in the demand for connectivity in the city, a situation that led to a disagreement and Zinox offered to buy out the state government, which owned 80 per cent of the joint venture in order to have the flexibility to operate the network.