MTN Group Ltd. is considering abandoning the acquisition of Nigerian internet provider Visafone Communications Ltd. after the country’s industry regulator ruled that broadband spectrum shouldn’t be included in the deal, according to two people familiar with the matter.
Africa’s biggest wireless carrier by sales is deciding whether acquiring the closely held company is worth it without the spectrum, said one of the people, who asked not to be identified as the deliberations are private. The deal valued Lagos-based Visafone at about $220 million, according to both people.
The Nigerian Communications Commission ruled last week that taking control of the spectrum would increase MTN’s dominance in the country, its biggest market. The Johannesburg-based carrier and competitors including Bharti Airtel Ltd.’s local unit are seeking to expand their internet coverage in Nigeria as growth in voice services slows. MTN agreed to pay almost 19 billion naira ($59 million) for spectrum as part of a government auction in June this year.
The NCC ruled in favor of MTN’s purchase of Visafone in December, according to an agreement seen by Bloomberg and signed by the regulator’s legal head, Yetunde Akinloye.