Nigerian-based conglomerate Transcorp aims to rebuild itself.
This follows a battle with insufficient working capital and internal strife in the past year since acquiring Nigerian Telecommunications (Nitel) and its subsidiary mobile telecoms operator Mtel, in 2006, for $750 million.
Adedayo Ojo, corporate communications officer at Transcorp, says the conglomerate is in talks with "possible" investors on the future of Nitel and Mtel, in a bid to create financial stability within both arms of the company.
"We are talking to a few interested potential investors as a strategy to reposition ourselves financially," explains Ojo. "Due to confidentiality clauses in our agreements, we are unable to disclose full details at this time."
Nigerian newspapers have hinted at a 42% buyout of Mtel by Vodacom, for a supposed $450 million. Vodacom and Transcorp would not comment on Vodacom's interests in the Nigerian mobile telecoms firm at this stage.
Nigeria's Daily Trust reports Nitel will separate from Mtel in a bid to stabilise the mobile telecoms operator to make it more attractive to investors and shareholders.
Nitel will be given to smaller companies to manage, while the company's network will be shared with vendors to maintain a reliable network.
Ojo adds the conglomerate has completed an initial public offering, which is expected to give the company substantial funds to pay off some of Transcorp's debts, as well as invest in some other businesses.
The company offered eight billion ordinary shares, each worth 6c per share, explains a Transcorp press release.
BT contention
Transcorp has also suffered some management problems with its shareholder partner British Telecom (BT) since its takeover of Nitel.
After Transcorp's acquisition of Nitel, the conglomerate entered into a memorandum of understanding with BT in a bid to utilise BT's experience in setting up the type of telecoms infrastructure envisaged for Nitel.
BT shareholders recently terminated a technical service agreement with Transcorp, citing poor administration and lack of funds within the company.
Ojo says there were issues with BT - regarding the management services agreement - which terminated the relationship. "While the issues were being negotiated, BT secondees in Nitel and Mtel walked away."
The Transcorp board recently appointed Tom Iseghohi as MD and CEO of the company. He will address a series of strategic internal and transformational business issues within the conglomerate, according to the Transcorp Web site.
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