DJ Nigeria: China Unicom Showed Interest In Telecom Privatization

IBADAN, Nigeria (Dow Jones)--Nigeria's Bureau of Public Enterprises, or BPE, Thursday released an official letter showing that China Unicom (Europe) showed interest in the privatization of Nigerian Telecommunications Ltd., or NITEL.

The BPE said Tuesday that The New Generation Telecommunications Consortium, which includes GiCell Wireless Limited, China Unicom (Hong Kong) Ltd. (CHU, 0762.HK) and Minerva Group, offered a $2.5 billion bid for the privatization pf NITEL.

However, China Unicom (Hong Kong) spokeswoman Sophia Tso said the company isn't bidding for a stake in NITEL and is not part of the consortium bidding for the telecommunications company.

Yet the letter, signed by William So, President of London-based China Unicom (Europe), said "we are pleased to inform you that we are willing to be technical partner to support New Generation Telecommunications Limited Consortium to bid for NITEL and to provide technical and managerial support on terms to be agreed, when the bid is finally won."

The letter added: "We will also consider equity participation of not less than 20% subject to final agreement with the consortium."

Chigbo Anichebe, head of public communications at BPE, said in a statement Tuesday that the offer by the New Generations Consortium was the highest bid submitted by five companies that participated in the bidding for 75% of NITEL and its subsidiary, M-TEL.

Anichebe said the companies were invited to bid for at least 75% equity in the entire NITEL conglomerate, or a stake in one or several of its units: M-TEL, the CDMA network, the SAT-3 cable and the analog mobile subsidiary, domestic fixed-line telephony and the national fiber optic transmission backbone.

-By Obafemi Oredein, Dow Jones Newswires; 234 2 7510489

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(END) Dow Jones Newswires

February 18, 2010 16:43 ET (21:43 GMT)

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