China Unicom, which last week denied any involvement in a bid to buy Nigeria’s former state-owned telecoms company, Nigerian Telecommunications (Nitel), may have reversed its position on the bid.
This indication emerged Tuesday when it said that its European subsidiary is interested in investing in the state-owned company, even as its shares fell in Hong Kong trading Monday.
China Unicom (Europe) Operations Ltd., “would be interested in exploring the possibility of equity investment in Nitel”, according to a filing to the Hong Kong stock exchange Monday.
The subsidiary also “indicated its interest in the provision of technical and managerial support,” the statement said.
Parent company, China Unicom of Hong Kong , which is China’s second-biggest mobile phone company, said it did not “have any involvement” in the Nitel bid, according to a statement issued 18 February by spokeswoman Sophia Tso.
Nigeria’s privatization agency, Bureau of Public Enterprises(BPE), responded by saying that the Chinese company was part of New Generation Consortium named as preferred bidder after offering $2.5 billion for Nitel.
Unicom shares fell 1.7 percent to HK$8.58 as of 11:40 a.m. in Hong Kong, the lowest since Feb. 19, compared with a 0.2 percent drop in the benchmark Hang Seng Index.
A possible investment in Nitel is “subject to certain conditions being fulfilled,” Unicom said in the statement, without elaborating. The Chinese company hasn’t started discussions on any “substantive and legally binding agreements”, it said.
Nigeria’s National Council on Privatization (NPC) said last week it selected New Generation Telecom Ltd., consisting of Unicom, Minerva Group of Dubai and Nigeria’s GiCell Wireless Ltd., as the preferred bidder after the group outbid other groups of investors, including Omen International Ltd. and Brymedia West Africa Ltd.
China Unicom said it would continue to observe the developments around Nitel’s proposed sale to private investors and will make announcements as and when appropriate.
by Ikechukwu Osodo
