Liberia: Libtelco Reportedly Buying Cellular Misfits Novafone for Millions

Mergers, Acquisitions and Financial Results

Monrovia — One of the worst-kept secrets in Liberian business circles appear to be gaining traction amid reports that the Government of Liberia is on the verge of entering into the already tight cellular phone market.

FrontPageAfrica has learned from multiple sources that the Liberia Telecommunications Corporation (Libtelco) has sealed a takeover deal with one of the struggling cellular phone companies in Liberia, Novafone.

Actual Amount Unclear

The deal, according to multiple sources is valued around US$30 million with the company reportedly to receive US$5 million up front, with the remaining balance expected to be paid to the company within a year. But Mr. Sebastian Muah, Managing Director of Libtelco when contacted by FrontPageAfrica said the amount being speculated is wrong.

According to Mr. Muah, the deal is actually valued at around US$10 million with US$7 million being paid to the struggling cellular company upfront and the balance US$3 million set to be paid at a later date.

The deal comes just weeks after the acquisition of another local cellular phone company, Cellcom Liberia by Orange Group via its Orange Cote d'Ivoire

FrontPageAfrica has learned that once the deal is sealed, the National Social Security and Welfare Corporation (NASSCORP) will replace Ecobank as guarantor.

The deal, according to sources is being financed by four local banks IB, LBDI, Ecobank and GT Bank which will be providing guarantee for the purchase.
Source: Front Page Africa