Sudatel and Intercellular agree terms

4 Jan 2008

Sudanese incumbent Sudatel has reached an agreement in principle to buy a 70% stake in Nigerian public telephony operator (PTO) Intercellular. The holding is worth around NGN68.75 billion (USD591.5 million). The deal was first announced last month. According to local paper ThisDay, the terms of the purchase are that Intercellular shareholders will get USD10 million, while Intercellular will get an immediate loan of USD10 million, and USD30 million will go on ‘other expenses’. Furthermore, Sudatel is obliged to invest USD100 million a year into the expansion of Intercellular over the next five years. 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. It has an estimated 120,000 subscribers. Sudatel beat other two major contenders, Dangote Group of Nigeria, and Mubadala Development of the United Arab Emirates, to clinch the deal.

Nigeria, InterC Network (formerly Intercellular)