New core investor bids for majority stake in MTI

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In Nigeria
Sep 4th, 2014
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Directors of Mass Telecommunication Innovation (MTI) Plc and a new core investor have opened exploratory talks on possible acquisition of the majority equity stake in the telecommunication infrastructure company.

On the heels of exclusive report yesterday by The Nation on the ongoing restructuring at MTI, a reliable market source in the know of the talks said the new core investor and directors of MTI have met to initiate discussions on the potential acquisition.

According to the source, the new core investor has indicated interest in acquiring majority equity stake of some 51 per cent in MTI.

The new core investor was said to have been impressed by the ongoing restructuring at the telecommunication company.

This initial expression of interest by a new core investor came on the heels of unsuccessful attempt by Tingo Mobile, a Nigerian mobile phone manufacturer, to launch acquisition bid for similar majority stake of 51 per cent in MTI.

Chief executive officer, Tingo Mobile, Dozy Mmobuozi, had said Tingo will acquire 51 per cent of MTI for about N4 billion to develop rural broadband in Nigeria.

According to him, MTI will be rebranded and remain listed on the NSE.

“We’re using the acquisition to reach out to the mass market,” Mmobuozi said. Lagos-based MTI’s “assets from base stations to license and goodwill and other things, will help penetrate rural Nigeria.”

However, a source close to the company said the Tingo’s bid was inconclusive and MTI is looking up to the new core investor for a potential deal.

The Nation had reported yesterday that MTI and four other companies had filed in for restructuring exercise at the Nigerian Stock Exchange (NSE), a process that might see significant changes in the operating, governance and shareholding structures.

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