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Globacom May Not Buy 9Mobile

Globacom May Not Buy 9Mobile

Local News

Globacom May Not Buy 9Mobile

Owing up to some accrued alleged debt, Globacom, Nigeria’s second-largest telecommunications network, may not be able to acquire 9Mobile.

Reports have earlier revealed the intention of Globacom to purchase (mobile formerly known as Etisalat.

Globacom In Debt, May Not Buy 9Mobile

Globacom May Not Buy 9Mobile

9Mobile And Globacom Logo

Etisalat Nigeria was recently taken over and changed to 9Mobile following a N541 Billion naira Debt.

The debt made the major investor in the company, Mubadala Group from the United Arab Emirates, pull out of Emerging Markets Telecommunications Service (EMTS).

The major investor who pulled out led to the dropping of the brand name from Etisalat to 9mobile on  July 13, 2017.

Sequel to this development, about five bidders have made the final list as the company is now up for sale. these companies include Teleology Holdings Limited, promoted by Adrian Wood, the pioneering CEO of MTN Nigeria; Smile Telecoms Holdings, a telco operating in Nigeria, Tanzania, Uganda, Congo DR and South Africa; and Helios Investment Partners LLP, an investment company.

Others are Bharti Airtel, an Indian telco that owns Airtel Nigeria, and Globacom, the Nigerian company owned by Mike Adenuga Jnr.

Reports later revealed that the company had been sold to Globacom which was debunked by Globacom in a statement on January 12, 2019.

According to the statement, “Globacom has not acquired 9Mobile as widely reported in the media. We are bound by the terms of the acquisition process as stipulated by the authorities handling it and we will not in any way sway or deviate from the rules.”

“We repose confidence in Barclays Africa, the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) which are handling the process that will lead to the emergence of a new owner for the company,” the statement read.

“The Company has some outstanding fees with the Nigerian Communications Commission (NCC).

“Globacom has not paid renewal of its spectrum license which is a total of $282 million for another ten (10) years. Similarly, the company is also owing N1.499 billion in microwave fees after the expiration of the initial term last year.”

“Meanwhile, for the sale of 9Mobile to see the light of the day, January 12, 2019, judgment of a federal high court sitting in Lagos, Southwest Nigeria must be appealed.”

“On Friday, January 12, a federal high court sitting in Lagos, Southwest Nigeria, nullified an ex parte order which it granted in July 2017 which had given legal backing to the interim board set up by Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) to manage the transition of the telecommunications company following a debt crisis.”

“The nullification follows dismissal by Justice Ibrahim Buba of the Federal High Court, the Preliminary Objection filed by United Capital Trustees Ltd in response to the application by Spectrum Wireless, a shareholder of EMTS, for a nullification of the Ex Parte Order of the court, which it claimed was obtained by misrepresentation of facts that alienated its interests in the company.”

“On Sunday, January 14, Spectrum Wireless, a shareholder of Emerging Markets Telecommunications Service (EMTS) which owns 9mobile licence, warned buyers not to acquire the telecommunications company.”

“J.A. Achimugu & Co, Solicitor to Spectrum Wireless Communication Limited, issued Beware Notice to buyers, stressing that any institution or company who transacts business for the purpose of sale or acquisition of EMTS or 9Mobile does so at his or her own risk”

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  • Globacom May Not Buy 9Mobile
  • Globacom May Not Buy 9Mobile

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