Transcorp Nigeria: Still optimistic
When I posted about Transcorp earlier this year, I said May 2007 would be a crucial month for the company. The hype about Transcorp has come and gone.
Bernard Longe is on compulsory leave due to an investigation at First Bank of Nigeria over a loan granted to NITEL whilst he was CEO. The Transcorp Board said the process was initiated in compliance with a Nigerian Stock Exchange (NSE) directive about indicted/dismissed CEO of quoted companies.
Earlier this month, Tom Iseghohi was appointed CEO, no word on Bernard Longe. Transcorp has had 2 CEOs in the last 2 years. Good luck, Tom.
It seems Transcorp managed to secure 76% of NITEL despite varying reports suggesting it only owns 51%. Last month, it was reported that BT had quit as its technical partner. Transcorp released a press release stating that first stage of the agreement with BT had simply finished and was hoping to extend it.
The company also stated it was “pursuing opportunities to bring in potential strategic investors into NITEL and M-tel”. A week later, the Independent reported that Transcorp was close to sealing a $1.2 billion deal with Vodacom. The deal would probably give Vodacom control of M-tel and a 27% stake in NITEL.
With this deal on the table, I’m still optimistic. If this deal goes through, it will inject the much needed cash into indebted company whose IPO was not well received (compared to Dangote Sugar, despite the worldwide roadsow) and will bring in Vodacom, an able partner, who has been keen to enter the Nigerian mobile telecom market for some time.
Tags: Africa, Business, Investments, Nigeria, Trancorp
Comments (3)
Hope is a beautiful thing! I am sure Tom is competent and I would not want him to fail but time will tell.
I am quite confused about Vodacom. They bought the stake in Econet Wireless and converted it to V-Mobile/Vee Networks but they then sold their stake to Celtel and they are now itching to come back again into the mobile market. It all seems confusing to me but what do I know!
Got ur msg- been far too busy myself but we’ll talk soon.
Vodacom’s parent company, Vodafone had issues with corporate goverance and bribery, so they withdrew from their operation from Nigeria. Check here.
wow ive missed so much :-/
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