Court Halts Ongoing Sale of 9Mobile Following Petitions by Shareholders Over $43.33m Investment Refund

The Federal High Court in Abuja has ordered a halt in the ongoing sale of the telecommunication firm, 9Mobile (formerly Etisalat) following petitions by some aggrieved shareholders who claim to be left out of the firm’s decision-making process.

Breaking News: Court stops planned sale of 9Mobile, as shareholders demand $43.33m refund.https://t.co/w4d3UJiejN

— Nairametrics (@Nairametrics) April 18, 2018

According to the Vanguard, the plaintiffs – Afdin Ventures Limited and Dirbia Nigeria Limited – who claimed to be major investors in the telco, took the case to court demanding a refund of their invested funds estimated at $43,330,950 as a result of being left out of the company’s decision.

Justice Binta Nyako, the judge presiding over the case has held that the ‘defendants ought to be heard’ and as a result ordered all the parties to maintain status quo, pending the determination of the case which has been adjourned till May 14, 2018.

Why am I not surprised… | Court Halts Sale of 9mobile, Shareholders Led by Mangal Demand $43.3m Refund – THISDAYLIVE https://t.co/dC37nBk8Df

— tyro (@DoubleEph) April 19, 2018

Mentioned as defendants in the suit are, Karlington Telecommunications Ltd, Premium Telecommunications Holdings NV, First Bank of Nigeria Plc, Central Bank of Nigeria, Etisalat International Nigeria Ltd and Nigerian Communication Commission (NCC).

In a supporting statement, Sani Ibrahim, the General Manager of the 1st plaintiff and a Director in the 2nd plaintiff, said that problem with Etisalat started as a result of mismanagement of funds. He also claimed that the defendants have failed to declare dividends on its shares of the plaintiffs since 2009 till date.

What Does this Mean for Teleology?

In completion of the 9Mobile sale, Teleology Holdings, the preferred bidder may just have another clog in its wheel of progress with this court injunction. Teleology who has been given 90 days to pay up the balance of $450m in order to take over the telco, is now currently faced with not only Technical and Financial evaluation from NCC and CBN respectively. Nevertheless, we can always hope for the best.