NewsWest AfricaTeleology has 90 days to complete Nigeria's 9mobile takeover -regulator

Tue,24Apr2018

Posted on Wednesday, 11 April 2018 16:34

Teleology has 90 days to complete Nigeria's 9mobile takeover -regulator

By Reuters

A model make use of her cell phone backstage before the MTN Fashion and Design Week in Lagos, Nigeria, Oct. 27, 2012. Photo:Sunday Alamba/AP/SIPANigeria's Teleology Holdings has 90 days to pay $450 million to complete its acquisition of telecoms provider 9mobile or face a rival bid, the country's telecoms regulator said on Wednesday.

The Nigerian Communications Commission (NCC) said 9mobile would be transferred to Teleology after the payment of $450 million, but added that reserve bidder Smile Communications could be considered if Teleology failed to complete the payment in time.

9mobile, formerly Etisalat Nigeria, is Nigeria's fourth largest telecoms provider.

It took out a $1.2 billion syndicated loan from 13 local banks in 2013 but failed to make repayments last year.

Debt-laden 9mobile

Under the stewardship of its lenders, it has changed its board, management and name and is now up for sale.

Investment holding company Teleology said last month it had made a $50 million deposit to meet conditions for the acquisition and had partnered with East Africa's largest telecoms operator Safaricom to transform debt-laden 9mobile.

Teleology, which was set up by 12 telecoms industry veterans led by ex-MTN Nigeria executive Adrian Wood, was picked as the preferred bidder for debt-laden 9mobile, following a bid process arranged by Barclays Africa.

Mauritius-registered Smile Communications, which operates mobile networks in Nigeria, Tanzania and Uganda, was named reserve bidder.



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