Interested investors/bidders are required to have a proven track record in telecommunications industry with a desire for horizontal expansion and above 51 percent equity in the bidding vehicle where a consortium of firms as involved in a bid, itnewsafrican.com reported.

In line with the on-going privatization programme of the Federal Government of Nigeria (FGN), the National Council on Privatization through its secretariat the Bureau for Public Enterprises (BPE) and the Transnational Corporation of Nigeria (TRANSCORP) Plc invited prospective core group/strategic investors to express interest in acquiring at least 51 percent and up to 75 percent equity stake in NITEL, and in its 100 percent wholly owned subsidiary, MTEL, through a public advert published on the BPE website.

The report said the bidding firm is also expected to have at least two million fixed or GSM telephone lines installed capacity and a minimum net worth of $500 million. BNP Paribas/Eleda Capital are appointed transaction advisers while HSBC and UBA Capital are joint advisers to Transcorp for the transaction.

Nitel was incorporated as a limited liability company in 1984 and formally commenced operations in 1985. Nitel is currently owned by FGN (49 percent) and Transcorp (51 percent). It commenced cellular operations in 1992.

In 1996 the Federal Government created the Nigerian Mobile Telecommunications Limited (MTEL) to operate Nitel’s cellular service. The firm later had Nitel’s GSM license transferred to it in March 2003.