Yes o, transcorp has just bought NITEL for $750 million.

i bet they will also buy NAFCTA and the port harcourt refinery.well i will definitely buy into TRANSCORP because it will be very profitable and ROI will be very high even if my stockbroker advises me against it,sometimes in life you tend to take the WALK IN THE JUNGLE alone and hopefully, there will be civilisation on the other side.

The one problem I have with this venture is that I well realize that there is no rule of law in Naija. Once Obasanjo goes and another goon comes to power, who can tell what he or she for that matter may do. A lot of our leaders are thugs and petty and would not think twice about canning the project just to get back at Obasanjo and his cronies for past slight. our courts are extremely corrupt and serve the next leader and so you could not expect to seek redress from that body. The whole thing may work if for example, Obasanjo sneaks in another thug to replace him. I don't really consider that option a calculated risk.

Akubeze,

The thuggish nature of Nigerian politics is clearly a risk to Transcorp, especially if whoever succeeds a Obasanjo
is not from PDP or his hand picked candidate. Risk is just what it is - it could go either way. If Transcorp play
their card right after Obasanjo's exit, they may lose their political influence but can still manage to create value
for investors in the future with the assets they are accumulating right now.

Consider this: The article posted by Chxta indicates that Transcorp has a 1Billion Euro credit facility from the
European Economic Council. I will think before the European Economic Council agreed to part with 1Billion Euro,
they may have done some risk assessment as well. Also notice, that the bid for NITEL was made in conjunction
with British Telecom and a UAE company - now you are getting into international relationship and things are
a bit more complicated, A succeeding government will not only have Nigerian investors to contend with but also
with the owners of British Telecom and UAE investors.

Finally, If I read correctly, the current bid price of $750million is twice the $256million (51%stake) offered earlier
by Orascom Telecom - I am not sure if I will really call that a giveway to Transcorp. There has to be more damning
evidence to show that the public assets were intentionally under-valued and subsequently sold off to Transcorp
at a bargain. In the absence of this, a new government MAY find it hard to justify going after Transcorp, a private
company by definition.

my stand is simple.TRANSCORP OR NO TRANSCORP, we want to see result.this is not the first time nigeria is packaging a mouth watering thing like that.all we want is a long term sustainability and result.
I JUST HOPE ITS NOT GOING TO DIE AFTER 2007.

As the world bank president recently commented on Nigeria, our pessimistic outlook is the result of decades of abuse and misrule. He however pointed out that the the country - more than ever before, is undergoing a renaissance.  As long as the reforms in place are not reversed, Nigeria would boast a solid economy in no time.  I share this view, especially based on current economic indicators.

TransCorp or not, I think this is good time to take advantage of the ongoing Transformation, do your research and invest in the right companies, especially the ones being privatized and run by the right people.  The next five -> ten years is likely to withness rapid grouwth of the nations economy and there may not be a better time to invest.

There is no denying that there are inherent risks , , but I'm yet to see true material success that didn't require a measure of risk - most more than this by orders of magnitude.

Funmi williams,
Your e-mail address is not going through

Thanks ,
Obalola

hello guys.

transcorp symbolises the exact position of this nation. as we all know we are in a make or break, win or lose situation now. if we sit and prophesy doom, it'll visit us. it is time for us to fight the "break" and "lose" virus thats in us. we are fighters, we need to give this conglomerate every support, cos it is giving our nation a fine face lift and is placing us on the global financial map, jobs will also be made available! as soon as we notice any form of negative usurping on its part we have a voice to sahke it down with.

how has transcorp giving our nation a face lift? please no flattery. am in port harcourt and am feeling the impact of glo, mtn, nepa, uba, nta and gov. odili but definitely not transcorp.

cut it some slack buddy and watch out for it's "bite" its going to be big. and believe me, no flattery.

I was waiting for the eagle to land before commenting on Transcorp and to avoid jumping to conclusions. But now I have made up my mind and even blogged on it.

The board of directors of the Transnational Corporation of Nigeria Plc (Transcorp) are strange bed fellows of some sorts. And the set-up of this Transcorp is more than meets the eye of the Nigerian public. Because, the brains behind Transcorp are also the portfolio managers of the kleptocrats in power since the reign of the evil genius, the retired General IBB to the current retired General OBJ who is the Generalissimo of the ruling party, the so called Peoples Democratic Party (PDP) of Nigeria.

Transcorp has already failed to make the mandatory initial payment of $500 million for Nigerian Telecommunications Limited (NITEL).The credibility and integrity of the masterminders of Transcorp will likely collapse like a pack of cards. It was only last week that Transcorp was announced as the preferred bidder for (NITEL)the national telecommunications carrier after it offered to pay $750 million for the 75 percent equity. But now that it has failed to even make the initial payment of $500 million, should the Bureau of Public Enterprises (BPE)continue with the transaction or dismiss Transcorp?

Is Transcorp not a fraud in disguise?
The making of the Nigerian Enron?
Why was Mr. Tajudeen Fola Adeola sacked from Transcorp?

N.B:
Cross-posted on http://nigeriantimes..com

:rolleyes:

I was not totally surprised that Transcorp missed the deadline. When it was first announced that they
had won the bid, the first thing that came to my mind was how and where are they going to come up
with $750million. Then I read that they have secured credit facilities and it all made sense. Having said,
it was unreasonable for BPE to expect an entity to cough out $500million within 10days, as a period of
14days plus was given to Investment International London Limited (IIL) to make good on their bid back
in 2002.

Given the circumstances, I think Transcorp played smart by making a 10% payment (after the deadline)
demonstrating their good faith in closing the deal. An extension will allow the lenders to get all the facts
they need to release the funds. If an extension is not granted, then to hell with NITEL, and I suppose
Transcorp gets to take its $75million back and move on to something else.

Now, I know the naysayers are so excited and are already predicting doom for Transcorp. But the truth
is, no Bank will loan you money, certainly not $500million to buy an ailing entity without knowing all the
facts concerning that transaction especially with respect to liabilities, etc. And if at the end of the day,
the deal was bungled due to Transcorp's incompetence, then let it be known as well so they can learn
from their mistakes going forward.

All these nonsense about the board been made up of strange bed-fellows and also the rumour mongering
as to the reasons why Mr. Tajudeen Fola Adeola was sacked is just pure crap. The board has to have
enough votes to remove Mr. Tajudeen Fola Adeola as the GMD. So its either he wasn't performing as they
had wanted or if it was political/personal, he simply did not have the support to remain in that position.

Of course, the same people also fail to recognize that while Mr Adeloa may not be on the board, its still
plausible to believe that he still retains his investment in Transcorp. Finally, if Mr Adeola is so great and the
embodiment of corporate Nigeria, then obviously, he might have seen something good about Transcorp to
have been associated with it in the first place, which negates all the speculations and accusations behind
everything Transcorp does.

It's hard to see how TransCorp could have been oblivious to the pressures a 7 day-limit would put them under, especially given that loans are involved. I believe that the ranting generated by this sale could have caused some concern to their creditors.

Nitel is a potentially lucrative deal but would require a lot more effort and oversight, compared to what obtains with black gold (crude) where they'd be more willing to take risks of this kind, given the returns that can be expected.

If the reason is due to an overestimation of their ability to raise the funds at such short notice, then it's an indictment of the leadership of TransCorp, given their pedigree.

Should this deal fall through, it may become more difficult for TransCorp to buy another major corporation in Nigeria, their credibility well dented.

All in all, I commend TransCorp, I like the vision, but it's probarbly ahead of it's time in a morally backward and eternally pessimistic society like ours - no offence people.

oshkosh,

I am not sure how the entire BPE bid process work, but I agree with you on whether they should
have been able to see the kind of presssure the 7-days deadline will place on them, especially if
this information was disclosed at the onset. It is also possible that Transcorp intended to secure
the bid first, then worry about arranging the financing afterwards, that is banking on getting an
extension to iron out the wrinkles.

Finally, should the deal fall through it will be an indictment on the execution capability of Transcorp's
management, which is fair enough and may prove to be an issue should they decide to bid for other
government assets in the future. I know Transcorp was shortlisted to bid on Port Harcourt refinery
but it has been taken off the privatization list by the Federal Government (for those of you who accuse
Obasanjo of giving away National assets to his cronies, I don't see how this is helping Transcorp).

The good new for Transcorp is that international lenders have been generous with credit facilities
(1Billion Euro according to Ndi) with which they can use to pursue their stated vision by setting up
startup companies, or carrying out mergers and acquisition of private companies - just no more BPE
bidding. I am sure that may also lessen the criticism from its Nigerian detractors as well.

I still believe in the Transcorp experiment.

For those that care, please read on:


http://allafrica.com/stories/200607170978.html

i do infact agree with that writer that NITEL was overvalued. I also agree that as more time passes and as MTN and GLO roll out much infrastructure that NITEL will have less bargaining power but that all said. Why did the experts at TRANSCORP not foresee this scenario. If the shareholders are strange bedfellows, what about the management?

i think its a good idea.nigeria is a great country and i see no reason y we should term every development in nigeria as a ploy for bribery and corruption.im behind transcorp 100%

Hey Folks!
I hope I don't miss out! Do be kind enough to let us know when their IPO will be out. I'm sure it's going to be over subscribed. Moreover it'd be profitable in the short run as technical suspension on their shares will be lifted before a regime change

its agenda raises eyebrows. i see it as a group of capitalists who have come together to take the last step to competely monopolize our economy. President obasanjo has chiseled this very eager group of capitalists to pool resources together to form a formidable force to match any foreign investor! That a good idea, but it boils down to the motive COMPLETE MONOPOLY OF THE ECONOMY,

Corporations have NEVER EVER propelled nations to world powers. People and governments do. The corporations sole purpose is to make money. Making money does not coincide with improvements in the general wellbeing of a countries citizenship. We have cell phone carriers in most urban metropolitan Nigerian Cities. Even taxi and bus driver carry this thing yet live in poverty. Basic infastructure for the bulk of Nigerians isnt there but yet companies make millions selling this technology and yet our citizens still stream accross to so called 1st world Countries like the US and England. I suppose the cellphone industry has reduced Emmigration right by bringing in bussiness and creative more International investments right?

You people need to read about Multinational and International corporations, about the IMF, WOrld Bank, about what globilization entails and its destructive nature. I love how for example countries like the US say how India is a developing as a Nation due to free trade and yet people are dying by the thousands, farmlands are being seized from the common people and the wealth of the nation is being squeezed and becoming top heavy, where a small few have most of the wealth at the expense of the bulk of the citizens. We have had thousands upon thousands of countries who have been subsidized and giving money by our government, billions of dollars, corp. like Enron, and they vanish and build nothing, because our government could care less.

Corporations are not going to save Nigeria. We and our government are the only ones who can.

So, what is the latest news on the Transnational Corporation of Nigeria Plc (Transcorp) and NITEL deal?

Still hanging in the air. There were conflicting reports that the balance of the payment will be
made this past Monday, but a Transcorp's spokesperson disavowed that report. Also, I have
read about on-going negotiations with the Unions with respect to the number of staff they
planned on keeping. To me this has been the closest indication that the deal is still on in the
absence of any official pronouncement from BPE. I have not been impressed with the execution
of this deal because the longer it hangs around, the murkier it gets. Of course, my job is easier,
I am merely a spectator from the sidelines. If they are able to close the NITEL deal, it will give
additional boost to the IPO. Its also safe to speculate that the reverse will be the case if they
fail as well.

i totally agree with momon.

We should stop being negative about our country and president and join hands in moving Nigeria forward. I totally support Transcorp and plan to become an investor without worrying about whether it fails or succeeds. But the success is up to us. If the South Koreans could support Hyundai and Daewoo to become what it is right now then i don't see why we shouldn't support our own mega coporation. I mean, these firms had the support of their governments those days. Even Airbus has the support of the European Governments in order to break the dominance of Boeing.

My point is " Let us Grow our own" and show the world what we're made of.

I'm keen to invest in TransCorp (I have like N3Million sitting around somewhere) when the IPO starts, any ideas, ? I know Nitel will fly, risk or no risk, and the share price could easily double. I want to be part of this.

Is the private placement still on? Has the shares been listed yet and for how much?

Do you think this is the right place for that?

Right place for investing, I say why not. I'm not really that bothered concerned with the long term. I know the value will go up after the initial listing and I may sell at that point, we'll see.

JoshO,

The IPO was supposed to have been out by end of 3rd quarter, but the NITEL deal
obviously caused some delays. Also, the fact that the NITEL deal has been finalized
is very likely to push the IPO date further into the 4th quarter, as this new "huge"
asset has to be factored in to determine a fair market price for the shares in the IPO
debut. Sit tight, you are just some months away, short term or long term, if the
assets of the company aremanaged right, investors will get serious returns on their
money.

Transcorp is a great idea but I don't seem to be interested in them considering that I feel the capital used to fund this mega corporation is being looted from public funds. Hopefully they do something good for the masses but I see them as incapable of doing that seeing how they want to by anything in sight. Like someone already mentioned, focus is a great tool in any business venture.

Transcorp. So many promises. Never Fulfilled Till Date. They never keep to Time. Today they say this. Tommorow they say that.

Are they reliable. Would they outlive this present government. Why so many op management shuffles at this early stage?

Well, im just being curious.

Donzman,

You should get your facts straight, I know it sounds and feels good to say Transcorp is
being funded with public funds, I know a couple of people here in the states who has
invested in Transcorp - they have not lived in Nigeria for the past 20 years or so, I don't
see how you are lumping their monies as public funds. I didn't know Jim Ovia or Dangote
or Femi Odetola were past governors and ministers, that is news to me.

rothBog,

I feel your concern, but its worth considering that this company has not being in existence
for more than 2 years. It will take sometime for them to get their acts together. One can't
blame the entire NITEL delays on them, it appeared that the BPE were not on time neither
on getting the Share Purchase Agreement (SPA) in order. If anything at all, I hope they get
more savvy with respect to the information they put out there as it tends to raise people's
expectations sooner than it really should.

Having said that, only time will tell whether they will be successful or not. If there are not,
then current investors will lose their money. But if they are successful within the next couple
of years, lets just say I know a couple of people that will be laughing to the bank.

In spite of the insinuations, I'm somewhat positive about this company and believe it will fly, though that may require a number of years during which operationally, the company would have firmed up. But even in the short term, I can't see how those who invested in the PP will loose, I now wish I had invested then.

As Nitel adds considerable value to the group, the IPO could easily be priced above N10, a big increase from the N6 during the Private Placement.

Anyhow, I have to say I'll consider myself a short - medium term investor, which means I'll expect a 20% appreciation in 3 months, otherwise I may have to consider other investment options,