The change of ownership for telecommunications operator 9Mobile, may yet take a while as the Nigerian Communications Commission (NCC) has written to the Central Bank of Nigeria (CBN) intimating it of the extension in the submission of final bids. CBN Governor Godwin Emefiele at a press briefing held after July’s last Monetary Policy Committee (MPC) meeting, expressed confidence that the sale of the telco would be concluded before the end of the year.
Reason for the extension
Executive Vice Chairman of the NCC, Umar Dambatta, while writing to the Emefiele stated that the board of directors of the company had requested for a push in the final deadline.
The final 5 bidders
The top five bidders who made it to the final stage of the bidding process are Airtel, Globacom, Smile, Helios, and Teleology Holdings Limited. Teleology holdings is a joint venture between Ex MTN CEO Adrian Wood and Ericcson. Globacom is one of Nigeria’s nig 3 GSM operators and is owned by billionaire businessman Mike Adenuga. Smile is an Africa focused telco with operations in Nigeria, Tanzania and Uganda. Helios is a private equity firm.
What led to the sale of 9Mobile
9Mobile (then known as Etisalat Nigeria) defaulted on a $1.2 billion loan it had obtained from a consortium of banks led by GT Bank. The default led to parent company Etisalat of the UAE pulling out and the banks threatening to take over the firm. They were however prevented from doing so by the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC). An interim board was subsequently appointed.
The lenders were prevailed upon by the Central Bank of Nigeria to hold off on taking provisions for the syndicated loan and agreed to extend it after the apex bank intervened back in July this year.