MTN CONCLUDES $70 MILLION VGC DEAL
MTN Nigeria has concluded plan to purchase VGC Communications Limited (VGCCL) to the tune of $70 million (N9.3 billion). Sources close to VGC informed our correspondent that the deal was completed last weekend and hand over processes would soon commence to enable MTN to fully take control of operations.
With the development, MTN remains the largest one single network in the nation's telecommunications market, having before now recorded over 10 million subscribers while VGC has over 20,000. It was also gathered that the negotiation, which began early last December has an undisclosed agreement pending when the company must have taken full control of VGC.
It would be recalled that earlier last year, business icon, Ibrahim Jimoh expressed interest in the take over of VGC but later withdrew when the Nigerian Telecommunications Limited (NITEL) went up for sale.
VGC Communications, also known as VGCCL, is a limited liability company licensed by the Nigerian Communications Commission (NCC) to provide cabling and radio telephone services nationwide and has laid extensive fibre optic cables, and internet service provision and recently obtained ULO from the NCC mid 2006.
Established in April 1995 with the primary objective of providing all the communications related services required by the residents of Victoria Garden City and Ikota shopping Complex, VGC went on to enhance the quality of life and ability to conduct business activities in those areas of Lekki Peninsula, Lagos, Nigeria, with an authorized share capital of N100,000,000, which has been paid in full.
VGCCL is a subsidiary of Modern Communication Technologies (MCT) Limited a company registered in Gibraltar and itself a wholly owned subsidiary of Globe International Holdings South Africa, which is a holding company of many subsidiaries in Nigeria with activities in the construction industry, manufacturing and other activities.
Modern Communication Technologies Inc. (MCT) is the Communications arm of Globe International Holdings S.A. with 100 per cent ownership of VGCCL shares.
On the other hand, MTN Nigeria's GSM network comprises over 2,336 base stations and an extensive transmission infrastructure, providing access to approximately 60 per cent of Nigeria's population.