Following the signing of MOU between Teleology Holdings Ltd, Central Bank of Nigeria, CBN, and 9Mobile on Tuesday for the takeover of the former Etisalat, Barclay Bank (the bank overseeing the takeover process) has officially written to 9Mobile board of directors and its creditors, United Bank for Africa, UBA, of Teleology’s wire instructions for the payment of the non-refundable deposit of $50 million for the takeover bid.
This was communicated to the board via an email written on Tuesday night by Mr. Bamidele Sadiq Abu on behalf of Barclays.
The bank wrote, “Dear members of Board, we have now received the wire instructions from Teleology. we will be following up with the trustees tomorrow (Wednesday and will provide the board with an update accordingly.”
With the payment of the takeover money, the way is now clear for Teleology to take full possession of 9Mobile as its new owner.
Teleology Holdings would have forfeited its right to acquire 9Mobile to Smile Holdings Limited, the reserved bidder, if it had failed to pay the deposit within the stipulated period.
Teleology, a private equity firm, with an investment portfolio of $11bn, had during the bidding process offered more than $500 million to acquire the mobile network ahead of Smile, which offered about $300 million – both were ahead of other 14 bidders.
9Mobile is Nigeria’s fourth telecom operator and had suffered a loss in market share estimated at N5.5 billion within six months, caused by the confusion and delay in the sale of the company by the Nigerian Communications Commission, NCC. The telecom company was hard to sell since the $1.2billion loan it took from a consortium of 13 foreign and local banks.
But all that may soon change with the finalization of the acquisition process and Teleology emerging as the company’s new owners.
Barrister Mohammed Edewor had on Tuesday signed the MOU on behalf of Teleology.
See below photo of the MOU signing ceremony: