Displaying items by tag: 9mobile

UAE telecom operator Etisalat’s former Nigerian operation, rebranded as 9mobile, will be purchased for $500 million by investment firm Teleology Holdings. An auction was held for the troubled operator, which became a new brand in the Nigerian telecom market in mid-2017 after Etisalat pulled out of the country.

The auction for 9mobile was supervised by Barclays Africa, which picked the highest bidder after four companies were shortlisted. Pan-African telecoms group Smile made a bid for $300 million and is said to be the reserve bidder. Nigerian operator Globacom also made a bid for an undisclosed amount, as did Helios Investment Partners.

Both Teleology Holdings and Smile have thirty days to prove they have the financial resources to pay for 9mobile. It was reported that Airtel Nigeria pulled out of the auction to purchase the operator because “too many things are hidden about the health of 9mobile”.

One area of concern is that two weeks ago, a Lagos high court in Nigeria ordered the board of 9mobile’s parent company, Emerging Markets Telecommunications Service (EMTS), to disband, after a judge claimed it had been established without authority.

The court's decision was made after Spectrum Wireless Communication, a company that invested $35 million in EMTS in 2009, claimed the board's approval was not in line with its interests and called for its contributions to the operator to be recognized. Now, United Capital Trustees, which is handling the sale of 9mobile, is appealing the court order.

The sale of 9mobile was entrusted to United Capital Trustees after it defaulted on repayments of a $1.2 billion load that was given to it by multiple banks. The Central Bank of Nigeria and the Nigerian Communications Commission (NCC) supported the EMTS board, and had received bids from five parties for the sale of 9mobile.

The sale of 9mobile was extended in early January 2018 by the NCC to January 16 after the original closing date passed with no final decision. Reports speculated that the decision would be further delayed after a Spectrum Wireless Communication solicitor said anyone "who transacts business for the purpose of sale or acquisition of EMTS or 9mobile does so at his own risk."

9mobile became a new brand in the Nigerian telecom market in mid-2017 after its previous owner, Etisalat, and an investment fund, defaulted on a $1.2 billion loan. The operator, formerly known as Etisalat Nigeria, was saved by regulators. 9mobile is currently the fourth largest operator in Nigeria.

Published in Finance

9mobile’s parent company hit with Nigerian court order

Written on Tuesday, 23 January 2018 08:29

Nigerian telecom operator 9mobile, formerly Etisalat Nigeria, is facing turbulent times. A Lagos high court in Nigeria ordered the board of the operator’s parent company, Emerging Markets Telecommunications Service (EMTS), to disband, after a judge claimed it had been established without authority.

The court’s decision was made after Spectrum Wireless Communication, a company that invested $35 million in EMTS in 2009, claimed the board’s approval was not in line with its interests and called for its contributions to the operator to be recognized. Now, United Capital Trustees, which is handling the sale of 9mobile, is appealing the court order.

The sale of 9mobile was entrusted to United Capital Trustees after it defaulted on repayments of a $1.2 billion load that was given to it by multiple banks. The Central Bank of Nigeria and the Nigerian Communications Commission (NCC) supported the EMTS board, and had received bids from five parties for the sale of 9mobile.

The sale of 9mobile was extended in early January 2018 by the NCC to January 16 after the original closing date passed with no final decision. Reports speculate that the decision will likely be further delayed after a Spectrum Wireless Communication solicitor said anyone “who transacts business for the purpose of sale or acquisition of EMTS or 9mobile does so at her own risk.”

9mobile became a new brand in the Nigerian telecom market in mid-2017 after its previous owner, UAE telecom company Etisalat, and an investment fund, defaulted on a $1.2 billion loan. The operator, formerly known as Etisalat Nigeria, was saved by regulators. 9mobile is currently the fourth largest operator in Nigeria.

Published in Telecom Operators

MTN, Airtel among 16 firms lining up to purchase 9mobile

Written on Wednesday, 25 October 2017 13:18

The acquisition of 9mobile, formerly Etisalat Nigeria, looks to be competitive, as 16 firms have submitted their interest to bid for the operator. Etisalat Group was forced to pull out of Nigeria this year after its firm couldn’t come to an agreement with its lenders to restructure $1.2 billion debt after missed payments. Following Etisalat’s exit, the Nigerian firm announced it had rebranded as 9mobile and said it is open to discussions with new investors. 

The 16 companies to express their interest in purchasing the Nigerian operator include South Africa’s MTN, India’s Bharti Airtel, and Nigeria’s ntel, which in 2015 acquired the assets of the defunct NITEL and MTel through the federal government’s privatization program. Africacell, a holding company with cellular communications companies in DRC, Gambia, Uganda and Sierra Leone, also submitted its interest in purchasing 9mobile, according to a report by ThisDay.

The report said industry sources confirmed that the 16 companies had complied with the deadline for the submission of Expressions of Interest (EoIs) at Barclays’ office in Lagos. The CEO of 9mobile, Boye Olusanya, said he is focused on getting the company back on track to make profit. 9mobile has about a 13 percent share in Nigeria’s mobile market, according to GSMA Intelligence, behind MTN, Glo Mobile and Airtel.

Published in Telecom Operators

Virgin Mobile, Vodacom and Bua Group are among companies potentially interested in buying 9mobile, formerly Etisalat Nigeria, according to a report by ThisDay. 9mobile recently rebranded after the UAE’s Etisalat terminated its management agreement with its Nigerian unit, giving up its 45 percent stake to a trustee.

Etisalat pulled out of Nigeria after its firm couldn’t come to an agreement with its lenders to restructure its $1.2 billion debt after it missed payments. Following Etisalat’s exit, the Nigerian firm announced it had rebranded as 9mobile and said it is open to discussions with new investors.

According to the report, Virgin Mobile, Vodacom and Bua Group, a local diversified business with a stake in various sectors, all plan to submit their memoranda of interest and technical presentations to a consortium of banks which have appointed advisers to evaluate acquisition bids.

Virgin Mobile is said to be willing to absorb the balance of the $1.2 billion debt 9mobile owes to 13 financial institutions, and stands out as the likely winner. Virgin’s chances are also high because of Vodacom’s rivalry with South Africa’s MTN over the years, therefore several former MTN Nigeria executives are backing Virgin’s potential bid.

If Virgin successfully takes control of 9mobile, it will reportedly execute a development strategy in which every cell site will be upgraded to 3G or 4G. The move could be extremely beneficial for a nation that has mostly 2G cell sites.

9mobile has about a 13 percent share of Nigeria’s mobile market, according to GSMA Intelligence, behind MTN, Glo Mobile and Airtel.

Published in Telecom Operators