Investment company, Teleology Holdings has finalised its takeover of 9mobile with payment of $50 million in fulfillment of the terms for the acquisition of the telecommunications company.
Having successfully paid the $50 million, Teleology is expected to pay the balance of its $500 million bid for 9mobile in the next 90 days, in order to take full possession of the telecoms firm.
Teleology, which floored telecommunications giants like Globacom, Bharti Airtel and Dangote’s Alheri to win the bid for 9Mobile, also on Tuesday moved a step closer to taking over the troubled telecoms company, when it signed a memorandum of understanding with the Central Bank of Nigeria (CBN) and 9mobile to take full possession of the firm.
According to Adrian Wood, Teleology’s Director and pioneer Managing Director of MTN Nigeria, “9mobile is transiting into a new phase that will be defined by optimal value delivery: value to our employees, value to our customers, value to local communities and indeed to all stakeholders.”
Wood added that Teleology has set out a 10-point plan that aggregates its mission and how it intends to turn the 9mobile organisation around.
The investment company plans to double the 9Mobile network with new 3G/4G specific cell sites as well as several thousands of kilometres of fibre optic cable across the country. It will drive a special program of rural internet coverage, focusing on 4G with broadband access planned for all of Nigeria’s 774 Local Government Areas.
He disclosed that Teleology had entered into an alliance with Safaricom, the largest network operator in East Africa. Safaricom is famous for its global “mpesa” mobile financial services system, which advances financial inclusion and supports the network with the highest operating efficiencies in Africa.
Coming at a period when competition in the Nigerian telecom industry has for some years been limited to price wars between the various GSM companies, clearly, Teleology’s coming will very likely herald a new era of intense competition and quest for market share among Nigeria’s telecom operators. Wood added that, the 9Mobile network will be optimised for high speed and high capacity data including imaging, video, games, music, IPTV and more.
According to Wood, Teleology is a Gibraltar-registered firm made of 12 international and eight Nigerian shareholders. The executive management, boasts more than 337+ years of collective frontline operational management experience.
9mobile, formerly Etisalat Nigeria Limited, was put on the block last year after it defaulted on a $1.2 billion loan given to it by a syndicate of 13 Nigerian banks.
Following the debt default, its Abu-Dhabi based investor – Etisalat Group – relinquished its shares to the receiver-manager appointed by the banks and pulled out from the Nigerian subsidiary.
9mobile said it was unable to meet the payment terms due to naira devaluation and the economic recession.