Mergers, Acquisitions and Financial Results

The planned $137 million deal to sell 51 per cent equity of Intercellular Plc to Telecel of South Africa has failed. The Director of Corporate Communications of Intercellular, Fidel Otuya, confirmed the development in an interview with the News Agency of Nigeria (NAN) in Lagos on Monday.

Intercellular resorted to the deal to get more funds to expand its network to other states in the federation. Intercellular, one of the pioneer networks in the country, has apparently been constrained by lack of funds to expand its services to many states, especially in the Southwest and Southeast areas of the country. "We couldn't reach agreement with Telecel so the deal has indeed collapsed. We had envisaged that we would have a breakthrough and use the fund to chart a new course for Intercellular but the deal fell through," Otuya stated.

Telecel operates in some Asian and African countries, including Republic of Benin and Ivory Coast, where it is the second largest network. According to Otuya, the management of Intercellular has now resolved to consolidate its current market share before thinking of expansion.

He said that the company was now concerned with network upgrade in the six cities to provide quality services for subscribers before moving ahead. On why the company had not shown serious commitment to corporate social responsibility, the Intercellular spokesman said that the company had a different approach to corporate social responsibility.