Intercellular to sell majority stake?

26 Nov 2007

Nigeria’s Business Daily reports rumours that domestic fixed wireless CDMA operator Intercellular has reached an agreement in principle to sell a majority stake in its business to Sudanese incumbent telco Sudatel. Intercellular is said to have called an extraordinary general meeting (EGM) at which the terms and conditions for the purchase would be officially established, following which a contract would be signed. Intercellular would neither confirm nor refute the report, but spokesman Fidel Otuya did say that it had scheduled an EGM to be held in a fortnight’s time, and further confirmed two of the prospective investors that Intercellular had been in talks with were Sudatel and the Dangote Group of Nigeria. Alheri Engineering, a wholly owned subsidiary of the Dangote Group, recently won a 3G carrier licence, which allows it to terminate commercial 3G wireless services in Nigeria.

Intercellular was established in 1998 and obtained a unified access licence at a cost of NGN260 million (USD2.2 million) in May 2006.