The Nigerian Communications Commission (NCC) has approved the transfer of 9 mobile to new investor, Investment Holding Company, Teleology Holdings Limited.
According to Reuters the new investor has since constituted new directors to run the affairs of the debt-laden 9mobile.
Recall that Teleology Holdings had emerged winner of a keenly contested bidding exercise for 9mobile’s acquisition. The bidding exercise was supervised by Barclays Africa.
But ever since Teleology’s emergence as the winner, drama, and controversies have trailed its 9mobile acquisition process. These controversies range from opposition posed by other bidders, to the alleged refusal of banks to lend Teleology the rest of the capital needed to finalise the acquisition bid.
Long walk to ‘freedom’ for Teleology.
The problem with Etisalat Nigeria, now 9mobile, started last in 2017 after the telco defaulted on a $1.2 billion loan it obtained from a consortium of 13 Nigerian banks led by GTBank. This caused the parent company (Etisalat of the United Arab Emirates) to pull out and relinquish its 45% stake in the company.
Following this development, the CBN restrained the Nigerian banks from taking over the telco. The CBN instead, constituted an interim board to oversee the operations of the company. Some of the affected banks have since made provisions on the loan.
Figures from NCC shows that 9mobile has been losing subscribers, in September, it had 15.36 million users, a 9 percent market share, which was down from 20 million subscribers, 14 percent share, earlier in 2017.