BusinessDay has confirmed that Teleology, the preferred bidder in the 9mobile sale process was given 21 working days after the 21st of February 2018 to pay up the sum of $50 million as a non- refundable deposit.
This gives the company until next week Thursday, March 22nd 2018 to pay up for the acquisition of the fourth largest telecommunications company in Nigeria.
Sources close to Teleology Holdings Limited tell BusinessDay that; “the company is currently working on raising the funds and will pay the non-refundable deposit on or before Thursday the 22nd of March 2018 which is the deadline date if 21 working days is counted properly from the date when the letter was received.”
Barclays Africa, the financial adviser to the consortium of banks owed $1.2billion dollars by 9mobile (formerly Etisalat) sent a letter to Teleology on 21 February 2018, informing the company that they had “reviewed all bids submitted and recommends Teleology as the preferred bidder.”
The company was then asked to make a non-refundable financial deposit of $50 million dollars within the next 21 working days to seal the deal.
This came after Smile Communications refused to up its $300 million bid to beat Teleology’s submission of about $500 million dollars
The Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) will be notified of the recommendation after the deposit has been made by Teleology Holdings Limited.
In a statement sent to BusinessDay, Tony Ojobo, Director, Public Affairs, NCC said that the NCC board is determined to avoid the recurrence of any missteps that may have led to the near collapse of the telecommunications company.
Ojobo’s statement read that the telecoms regulator “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 and 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.”
According to the NCC spokesman, after all due diligence has been carefully completed, “the winner will now apply to NCC in order to commence the processes for securing the regulatory approvals from the Board of the NCC necessary to give full effect to the transfer.”
Teleology Holding Limited is an SPV formed and owned by telecommunications industry veterans specifically to acquire a substantial holding in 9mobile and thereafter potentially other underperforming Mobile Network Operators (MNOs).
Included in this team are five of the top leadership executives who established and grew MTN Nigeria from 2001 to 2005.
Having emerged preferred bidder, Teleology will acquire 9mobile and be faced with the responsibility of retaining its about 17 million customers and improve on the company’s 12 per cent market share.
Jumoke Akiyode- Lawanson
