Shareholders and management of Nigerian fixed-wireless CDMA operator Intercellular emerged from an extraordinary general meeting on Monday with a resolution to sell a majority stake in the company to Sudanese incumbent telco Sudatel in a deal worth up to USD550 million. According to informed sources, quoted by local paper Business Day, Sudatel will pay USD50 million for 70% of Intercellular, and will make capital injections of USD100 million a year for the next five years, starting from January 2008. It is thought that the niceties of the deal will have been concluded by the end of the year.
Intercellular was established in 1998 and won a unified access service licence from the Nigerian Communications Commision in May 2006 at a cost of NGN260 million (USD2.2 million). It has between 100,000 and 120,000 subscribers. Other companies said to have been interested in a stake in Intercellular were Alheri Engineering, a wholly owned subsidiary of the Dangote Group, and the Mubadala Development Company of the UAE.