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Teleology holdings Limited, preferred bidder for the 9mobile sale has met up with its payment deadline set for today, March 22, 2018 for the sum of $50 million dollars as a non-refundable deposit to acquire the fourth largest telecommunications network in Nigeria, BusinessDay has gathered.
Although the final decision on who emerges winner of 9mobile lies in the hands of the Nigerian Communications Commission (NCC), teleology has played its part by fulfilling all obligations as directed by Barclays Africa, the financial adviser to the owed banks.
“There has not been an official letter written by the board of 9mobile to indicate that they have made the decision as to who is the preferred winner but there is a process set by Barclays Africa for the bidding process and as I speak to you, I can tell you that Teleology has met up with the payment deadline and has paid the $50 million dollars. It will then be up to the regulator, whenever they are officially informed, to decide whether or not the company ticks all the requirements needed to be issued the license,” Olusola Teniola, President, Association of Telecommunications Companies of Nigeria (ATCON) told BusinessDay in a telephone interview.
Days ago, industry watchers believed that there might be interference and a possible halt in the sale process, after Smile Communications, the reserve bidder for 9mobile contested the fairness in the selection of teleology as preferred bidder by Barclays Africa.
In a letter written by Smile Communications to Barclays Africa through Templars Law, its solicitors, the company expressed displeasure in the fact that Teleology was selected only on the basis of financial capability without necessarily meeting the other criteria for 9mobile acquisition set by the Nigerian Communications Commission (NCC).
In a statement sent by Smile Communications media team, the company confirms that there is an “untidy handling of the bid for 9mobile” and that the NCC’s laid down rules of engagement that will ensure the transparent sale of 9mobile and the sustenance of the business after sale was not adhered to.
It stated that NCC had, in a letter by its Governing Board signed by Olabiyi Durojaiye, the Chairman and sent to Godwin Emefiele, Governor of Central Bank of Nigeria (CBN), clearly stated the three criteria that will guide the emergence of a preferred bidder for 9mobile.
The first is “that whichever company would qualify as successful bidder to take over 9Mobile has the technical competence apart from financial capability to turn round 9mobile and not further compound its problems.”
The second criterion is “that the successful bidder should come in with substantial funds (FOREX) to sustain the industry not just recycling funds facilities already within the economy”.
While the third insists that “the company that will take over should have adequate technical infrastructure on ground”.
Smile was therefore unsatisfied that the bidding process had ignored the two other criteria set by the telecoms regulator and had gone solely by the highest bidder.
“The last criterion stemmed from NCC’s disavowal of the likelihood of the CBN being swayed by the creditor banks that only focuses essentially on repayment of outstanding loans”.
NCC however assured stakeholders of its concern for the sustenance of 9Mobile business after sale, hinging on the need for “the continuity of the company for the betterment of the telecom industry, subscribers, labour force and the interest of Nigeria as a whole”.
Tony Ojobo, Director, Public Affairs, NCC said in a statement sent to BusinessDay that the commission will ensure that 9mobile is “duly taken over by investors with the requisite technical capability and pedigree to manage the organisation.”
The board of the NCC affirmed its determination to avoid the recurrence of any missteps that may have led to 9mobile’s current situation, stating that “pursuant to the powers conferred on the Commission by the provisions of the Nigerian Communications Act 2003 and other instruments in that regard, the Commission will ensure that all relevant statutory and regulatory processes are duly complied with in the process leading up to the emergence of new owners for the company.”
The Board therefore assured all Stakeholders that the Commission will apply all necessary diligence to see the ongoing sale process through to its logical conclusion in a manner that protects the overall national interest and the seamless operation of the national telecommunications network.
Jumoke Akiyode-Lawanson
