Business

9mobile acquisition: Teleology gets 90 days ultimatum to pay balance

Published

6 years ago

April 11, 2018

Spread The News

Teleology Holdings Limited (THL), the preferred bidder for 9mobile limited has been handed 90 days ultimatum to pay the $450 million balance to seal the deal.

Nigerian Communications Commission (NCC) Executive Vice Chairman Prof. Garba Umar Danbatta who stated this on Tuesday at the signing of Memorandum of Understanding (MoU) on Financial Inclusion at the CBN Headquarters, Abuja, said if Teleology failed to make the complete payment within 90 days, Smile Communications Limited (SCL), the reserved bidder, might take its place.

The firm which has paid $50 million refundable deposit for 9mobile acquisition emerged as bidders for 9mobile out of 16 firms, which filed bids with Barclays of Africa, 9mobile’s financial adviser.

They include Globacom, Airtel, Smile Communications, Helios, MTN, ntel, Virgin Mobile from the United Kingdom and Vodacom of South Africa, BUA Group, Morning Side Capital Partners, Obot Etiebet & Co, Blackstone Private Equity, and Hamilton and George International Limited.

Airtel pulled out; Glo failed to attach financial commitment to its bid.

Danbatta, who led his management team to the CBN Headquarters, said NCC was targeting 30 per cent broadband penetration by the end of the year, adding that the commission has so far made 70 percent progress on the target.

He told CBN Governnor Godwin Emefiele that the telecom industry has been recording steady growth since 2001, noting that in the past four years its contribution to the Gross Domestic Product (GDP) stands at 10 per cent.

Danbatta said: “But the figures may not tell the entire story. Investments in the sector in human and material resources have continued on the rise. In 2001, the telecom sector could boast of mere $50 million worth of investment, but as at September 2017, we have investments worth $70 billion.

“The Value Added Services (VAS) segment of the telecom market in Nigeria today is worth $200 million and is estimated to grow to $500 million by 2021.

“In subscription numbers, the less than 500,000 lines in 2001, have grown to more than 147 million recorded as at January 2018. Tele density, weighted in the ITU (International Telecommunication Union) formula of one line to 100 of population, stands at 105.21 per cent, while internet penetration has hit the 100 million mark as at January 2018.”