Renowned banker and Chief Executive of Zenith International Bank Plc, Jim Ovia, has expanded his footprint in Nigeria’s telecommunications sector by acquiring Cellcom Limited, one of the country’s licensed private telecommunications operators (PTOs), in a deal valued at N4 billion ($33 million).
The acquisition, carried out through Cyberspace Nigeria Limited, an Internet Service Provider (ISP) owned by Ovia, includes both the purchase of Cellcom’s core assets and the assumption of its liabilities. While Vincent Obianodo, a co-owner of Cellcom, was among the key stakeholders in the transaction, the deal involved the acquisition of a 100% stake from multiple investors, effectively transferring full ownership to Ovia’s company.
Breakdown of the Deal
Industry insiders disclosed that the N4 billion valuation includes:
•N3 billion for the outright acquisition of Cellcom Limited
•Over N1 billion set aside for settling the company’s outstanding debts
Cellcom, which had accumulated liabilities exceeding N1 billion, required significant financial restructuring, which Ovia has factored into the transaction.
Transition and New Ownership Structure
The takeover process reportedly began on June 1, 2007, with Cyberspace Nigeria assuming operational control of Cellcom’s network, assets, and customer base. Sources indicate that the acquisition involved negotiations with all major shareholders, including Vincent Obianodo and other investors, to facilitate a smooth transition.
Stakeholders’ Reactions and Official Responses
When reached for comment, Chief Vincent Obianodo neither confirmed nor denied the acquisition, stating that discussions were still ongoing.
“We are still in talks, so I cannot confirm if the deal has been finalized,” Obianodo remarked.
Similarly, Victor Adoji, a Corporate Affairs Manager at Zenith Bank, could not verify the transaction at the time of reporting, requesting more time for confirmation.
Cellcom’s Market Position and Planned Upgrades
Established in 2001, Cellcom was an early player in Nigeria’s fixed wireless telecom space, building a subscriber base of approximately 30,000 users, with coverage in Lagos and Abuja.
With the acquisition complete, the new owners have reportedly begun discussions with Huawei Technologies, a leading telecom equipment supplier, to revamp Cellcom’s network and improve service delivery.
Implications for Nigeria’s Telecom Industry
The acquisition aligns with broader market consolidation trends following the Unified Access Service Licence (UASL) framework introduced by the Nigerian Communications Commission (NCC) in 2006. This regulatory change allowed PTOs to expand into mobile services, increasing competition in the industry.
Jim Ovia’s foray into telecommunications, coupled with his impending launch of Visafone, positions him as a formidable player against established market leaders such as MTN, Glo, and Celtel.
Looking Ahead
With Jim Ovia now at the helm of Cellcom, industry observers anticipate major network upgrades, aggressive expansion, and the introduction of new service offerings. As Nigeria’s telecom sector continues to evolve, this acquisition solidifies Ovia’s role in shaping the industry’s future.
