In what may seem to be a loss for Teleology holdings, an emerging report has it that the final transaction for the takeover of 9mobile, on Wednesday, has failed as Central Bank of Nigeria (CBN), Nigeria Communications Commission (NCC) and other stakeholders couldn’t reach a conclusion.
Wednesday, July 25 2018 happened to be the last day of the 90-days period handed to Teleology Holdings to complete payment for the embattled telecommunications firm, but couldn’t complete the deal. A source, according to Guardian, claimed the meeting would likely continue today.
We reported that Teleology holdings may have to fork up an additional $50 million as payment for the firm. The payment was requested by the CBN as a sign of its continued commitment to the transaction. The firm had triggered a 20-day extension clause in its bid agreement.
9mobile defaulted on a $1.2 billion loan it had obtained from a consortium of 13 banks led by GTBank. This led to the parent company Etisalat UAE pulling out and relinquishing its 45% stake in the telecommunication company.
The banks threatened to take over the firm but were prevented from doing so by the CBN and the NCC.
An interim board chaired by the Deputy Governor of the CBN, was subsequently appointed. The interim board then announced a bid process midwived by Barclays Africa, a financial services provider offering personal and business banking, credit cards, corporate and investment banking, wealth and investment management.
Five firms – Globacom, Smile, Airtel, Helios and Teleology Holdings, made it to the final bidding stage.
In February, 2018, Teleology Holdings promoted by Adrian Wood, former CEO of MTN Nigeria emerged as the successful winner of the keenly contested bidding exercise for 9mobile.
Barclays Africa, which supervised the sale of 9mobile, had sent a letter to the successful bidder.