MTN to Buy UBA-Owned XS Broadband in N4 Billion Deal in Nigeria

Mergers, Acquisitions and Financial Results

South African mobile operator, MTN Nigeria has agreed to acquire XS Broadband Limited (Formerly UBA Capital & Trust Ltd), a fixed wireless access licensee owned by UBA PLC in a transaction that may be closed at about N4 billion. Technology Times checks revealed that the mobile operator has agreed to the purchase of the company which has an FWA licence covering 24 states including the niche Lagos market.

Coming after the US$65 million purchase of 100 per cent stake in VGC Communications Limited, it is yet another major acquisition by the Nigerian mobile market leader which accounted for 13,384,000 out of the 44,301,000 subscribers recorded across the African operations of the MTN Group as at March 31, this year.

The buy also comes just as indications emerged today that three companies, MTN Nigeria, IPNX and Naija Wi-Fi Consortium have been selected for the State Accelerated Broadband Initiative (SABI) promoted by NCC.

Under the SABI project, financial and other incentives will be offered by the regulator to service providers to enable them roll out broadband services in selected cities in the country as part of a broad programme to spread a nationwide 'broadband blanket' over Nigeria.

(Source: This Day)