- Ntel has appointed former MTN Nigeria CEO Adrian Wood to lead its restructuring and rebranding efforts, with plans to raise $550 million from investors.
- Wood has been engaging with key stakeholders and potential investors since January, including meetings with the Nigerian Communications Commission and African Capital Alliance.
- He promises a complete transformation of Ntel into a new brand with innovative strategies, products, and a nationwide 4G/5G network rollout, supported by interim funding from AMCON.
Struggling telecommunications company Ntel is poised for a comeback with the appointment of Adrian Wood, the former CEO of MTN Nigeria, to spearhead its restructuring and rebranding efforts.
Wood, who quietly took on the role in January, has laid out ambitious plans to raise $550 million from investors to revitalize the company. He detailed these plans in a letter to the company’s staff dated June 5, 2024, a copy of which was obtained by Nairametrics, a Nigerian news agency.
Ntel, originally the government-owned NITEL before its acquisition by NATCOM Development and Investment Limited (NatCom) and relaunch in 2016, has seen its fortunes decline in recent years.
The Comeback Strategy
Wood’s letter outlines the strategic moves he has made since taking office. On May 21, he met with Dr. Aminu Maida, EVC/CEO of the Nigerian Communications Commission, to discuss NatCom’s future plans, industry roles, and prospects for raising the equity and debt capital needed for a nationwide 4G/5G network rollout.
“In the background, I have been engaging with potential institutional investors,” Wood wrote. “When our new financial business plan and offering document are ready, there will be a roadshow to raise an estimated $500 million to $550 million to restructure, rebuild, and develop NatCom.”
Already, Wood and CIO Anthony Adegbola have hosted a New York investment fund at some of Ntel’s Lagos facilities. They also had a positive meeting with the African Capital Alliance (ACA), a leading private equity group in Nigeria and early investor in MTN Nigeria, which has enjoyed its best returns from that investment.
Wood plans to meet with three other potential institutional investors next week. These targeted investors are Africa-focused, have investments in Nigeria across various segments, have offices in the country, and are interested in funding digital infrastructure projects.
However, securing large capital commitments will take months of negotiations in several stages. In the interim, the company will leverage a facility from AMCON, a 55% shareholder in NatCom, to support crucial project management, new capital formation, and network rollout phases before relaunching the business.
A New Brand
Wood urged the staff to remain optimistic, promising that the ongoing restructuring efforts would transform the company into a new brand.
“There will be a set of fresh, innovative business strategies, along with new products and services that don’t currently exist in Nigeria. All technical systems and platforms will be constructed and rolled out nationwide from the ground up. It will be an enormous undertaking, but we will prevail. I am sure of it,” he assured the staff.
Source: Nairametrics
