Emerging Markets Telecommunication Services Limited, operating under the trade name 9Mobile, has been acquired by LH Telecommunication Limited.
According to a statement issued on Sunday by the company, the acquisition of majority shares in the Nigerian telecom company was approved by the Nigerian Communications Commission (NCC) and the Federal Competition and Consumer Protection Commission (FCCPC) as required by law.
The investment, which was approved by African Export Import Bank (AFREXIM), the senior lender to 9Mobile in May 2023 has resulted in a change in control of 9Mobile in favour of the new investor by the issuance of new shares amounting to 95.5% of 9Mobile to the new investor in consideration for the injection of fresh capital into the company.
New Board
Pursuant to the injection of capital, the new investor nominated has appointed a new Board for the company. An accomplished and versatile entrepreneur with over 36 years of experience in strategic sectors of the African economy, Thomas Etuh, has been named as the new Chairman of 9mobile Board. Other Directors in the Board include Nahim Abe Ibraheem, and Femi Edun.
LH Telecommunication Limited has also nominated Senator Daisy Ehanire Danjuma, Michael Ikpoki, Ibrahim Puri, Gloria Danjuma, and Emmanuel Etuh as new members of the board of directors of 9Mobile.
The new Board has also also ratified the appointment of the new management team led by Obafemi Banigbe as the Managing Director and Chief Executive Officer of the Company to lead the Company through this transition stage and take it on the path of recovery. Recall that 9mobile recently announced the appointment of Banigbe as CEO.
What this means
The latest acquisition is expected to bring 9mobile back to the reckoning in the telecom space, having struggled to retain subscribers over the years.
With the injection of fresh funds by the investors, 9mobile, which currently plays as a distant 4th operator in the mobile network space in Nigeria can now compete again with MTN, Airtel, and Globacom, who have cornered majority shares of the mobile market.
9mobile which once had over 20 million active subscriptions had 11.6 million connected lines as of March 2024 as it has suffered consistent loss of customers over the years.
The company as of March accounted for only 5.3% of the market share while MTN, Airtel, and Globacom controlled 37%, 29%, and 28% of the market in that order.
What you should know
The acquisition of 9mobile by LH Telecoms make it the second time the company which launched as Etisalat is being acquired.
Following its loan default to banks under its previous owners, 9mobile was acquired by Teleology Nigeria Limited in 2018 after a bidding process led by Barclays Africa, with the participation of the Central Bank of Nigeria (CBN), Nigeria Communications Commission (NCC) and 13 Nigerian banks including GT Bank, Zenith Bank, Access Bank and others.
The acquisition process was concluded with the initial deposit of $50 million and a further payment of $251 million as settlement to the banks who took over the company.
These payments, as well as further due diligence and technical evaluations, led to the clearance of the sale by the NCC, and the handover of 9mobile to the new owners, who changed its name from Etisalat to 9mobile and announced a Board on 12 November 2018 with His Royal Highness Prince Nasiru Ado Bayero as the new Chairman.
9mobile has since undergone a series of changes in board members and management.
Meanwhile, as of the time of filling this report, details of LH Telecoms, the new owners believed to be a Nigerian company, are still sketchy.
