Teleology Holdings to Go Ahead with 9Mobile Deal Amidst Challenges
Despite the challenges faced from different quarters to stop the ongoing sale of Nigerian telecoms company, 9Mobile to its preferred bidder, Teleology Holdings, the company is said to still be on course and expected to complete the deal before the deadline given.
Teleology Holdings may go ahead with the 9mobile acquisition despite controversies https://t.co/x2DGQOnEUV
— Ugo Obi-Chukwu (@ugodre) May 15, 2018
The ongoing sale of the debt-ridden telco, 9Mobile, had recently been placed on hold by a Federal High Court, Abuja. This is as a result of complaints from two of the company’s angry shareholders, including Nigerian businessman – Alhaji Dahiru Mangal, asking for a refund of $43m they had initially invested in the company. Despite the court order, an informal approval has already (allegedly) been given for the continuation of the process.
According to reports from The Guardian, in order to complete the initial bid price of $500 million, Teleology has sought for the help of UBS (a global firm providing financial services in over 50 countries) to get $300 million loan from local banks and investors. However, the balance of $200 million would be raised via equity. This is contrary to a recent report that Teleology offered only $301 million, just an additional $1 million to beat Smile Communications’ $300 million bid.
With the deal expected to be completed within the 90-day window lapse, Teleology is to ensure that the total fund is raised before the deadline in order to cement the acquisition (financial evaluation). After which, it will undergo a technical evaluation by the NCC (which many believe it might not be disqualified for).
Reports by TMT Finance also have it that Teleology might still be invited before Nigeria’s lower legislative chamber to make an official presentation of its plans for the telco.