NIGERIA'S VGC COMM BOUGHT FOR US$100M, ADEBAYO RESIGNS

Mergers, Acquisitions and Financial Results

VGC Communications Limited, a wireline Private Telephone Operator in the Ikoyi and Victoria Island axis with a recent entry into Port Harcourt, has changed ownership. It has been bought over by Chief Jimoh Ibrahim, an oil magnate and owner of Global Fleet. The change in ownership has brought about the resignation of the erstwhile General Manager/ CEO of the Company, Mr. Gbenga Adebayo.Sources close to the deal said the Communication firm was acquired for $100 million.

Sources close to the Company reveal that there has been high level negotiations between the Parent Company of VGCCL and Global Fleet Group, an indigenous Oil and Gas Company to acquire the Company. Owned by the HFP Engineering, VGC Comm is one of the few wired line operators operating in the company. Ibrahim had earlier in the year bought over Meidan Hotels, located in VGC owned by the same owners as the telecom firms. Adebayo could not be immediately reached for comments Tuesday as he was said to be out of the country.Discussions were said to have been on for sometime but agreement was reached last Saturday.

Under a management team led by Mr. Gbenga Adebayo VGCCL was transformed within five years from a Community Service provider for Victoria Garden City to national wireline operator with activities in Lagos, Abuja and Port Harcourt. The Company has already started laying fibre optic cables from the Island to Ikeja, in Lagos.

VGCCL under Adebayo and the former owners last year acquired the assets of Virgin Technologies Limited, an international gateway licensee which was to enable it carry out international gateway operations.

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