MERGERS, ACQUISITIONS AND FINANCIAL RESULTS
Nigeria: Syntel joins hands with Ericsson in bid to acquire NITEL
Nigerian firm Syntel has finalised a technical partnership agreement with Swedish equipment vendor Ericsson in an attempt to acquire a 75% stake in fixed line incumbent NITEL, after the latest attempt to sell the ailing telco was cancelled last month.
Local news source ThisDay reports that under the agreement Ericsson would provide the technical assistance for the revival of NITEL, including the expansion of its network across the country.
Snytel has also reportedly partnered with financial consortium DKAI to provide USD1 billion for the acquisition of NITEL and its mobile arm M-Tel. Syntel’s chairman and CEO, Precious Elekima, said the company has finalised plans to acquire and revive NITEL and M-Tel and assured that if it was successful in its bid to purchase the telco, the company would be fully operational within 180 days.
Earlier this month it was reported that Microfone Telecom Nigeria, an initiative of the Nigerian Capital Development Fund, had also expressed an interest in taking over the operations of NITEL.