=DJ Nigeria Government Stands By Statement Unicom Bid For Nitel

   By Robb M. Stewart and Will Connors
   Of DOW JONES NEWSWIRES

JOHANNESBURG (Dow Jones)--Nigeria's government is standing by its assertion China Unicom (Hong Kong) Ltd. (CHU) is part of a consortium selected as preferred bidders for a controlling stake in Nigerian Telecommunications Ltd., or Nitel, despite the Chinese company's denial.

The Bureau of Public Enterprises in a statement said it "stands firmly by the results of the open and transparent bid process of Nitel" held Feb. 16.

However, a second company is also denying it took part in the bidding process. South African phone company Telkom SA Ltd. (TKG.JO) said it didn't participate in the bidding for Nitel or any part of the Nigerian company, a spokesman told Dow Jones Newswires.

Sophia Tso, a spokeswoman for China Unicom, Thursday denied involvement in the privatization of Nitel and said the company wasn't part of any consortium as had been stated by the Bureau of Public Enterprises.

The bureau in a statement Tuesday said a $2.5 billion offer by the New Generation Consortium was the highest bid submitted by five companies that participated for a stake in Nitel and its mobile subsidiary, M-Tel. Information supplied by the Nigerian agency said China Unicom was part of the consortium along with Nigeria's GiCell Wireless Ltd. and the Dubai-based operations of Minerva Group.

In its statement Thursday, the agency said the offer received from the New Generations consortium for a 75% stake in Nitel included a commitment letter from Minerva signed by its Chairman Ahmed Abdullah and a separate letter signed by William So in which China Unicom (Europe) Operations Ltd. said it would be a technical partner in the consortium and would consider an equity stake of not less than 20%.

Chigbo Anichebe, a spokesman for the Bureau of Public Enterprises, said that he had spoken with So on the telephone and confirmed China Unicom's role in the consortium.

Efforts to contact Minerva Group representatives in Dubai weren't immediately successful. Usman Gumi, chief executive officer of GiCell Wireless Ltd., in an interview Thursday said the London office of China Unicom agreed to a technical partnership in the New Generation consortium and suggested the Hong Kong office may not have been informed.

According to the Bureau of Public Enterprises, Telkom was part of a group known as AFZI/Spectrum Consortium that offered $375.5 million for control of Nitel.

Naas Fourie, chief of strategy at the Pretoria-based company, said there was no truth to that claim.

Johannesburg-based MTN Group Ltd. (MTN.JO) didn't immediately respond to questions about a reported $25 million offer by its Nigerian unit for only the SAT-3 assets of Nitel.

-By Robb M. Stewart, Dow Jones Newswires, and Will Connors; +27 11 783 7848; robb.stewart@dowjones.com

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(END) Dow Jones Newswires

February 19, 2010 10:56 ET (15:56 GMT)

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