There seems to be no end in sight for the crisis that has nearly consumed Etisalat, now 9mobile as a Federal High Court in Abuja has set aside the sale of telecommunication firm, Etisalat International Nigeria Limited (9mobile) to Teleology Nigeria Limited.
The former Etisalat fell into crisis when it defaulted on a loan repayment scheme to the tune of $1.2bn due to a consortium of 13 local banks, citing economic downturn and currency devaluation.
This led to the exit of the Etisalat Group of the United Arab Emirates from the company, which handed over its 45 per cent stake, terminated its existing management and technical support agreements with the telecoms company.
The CBN in collaboration with the NCC had in July 2017 intervened to save the company from collapse and appointed a Board of Directors chaired by Dr Joseph Nnanna, a Deputy Governor of the apex bank.
The board was asked to oversee the affairs of the company pending the completion of regulatory due diligence of the bid documents submitted by Teleology and 16 others for its acquisition.
In February this year, Teleology beat 16 other firms that submitted Expressions of Interest to Barclays Africa, emerging as the preferred bidder for the embattled telco.
It was reported that Teleology made an offer of $301m for the company, while Smile Telecoms Holding emerged as the reserved bidder having offered $300m.
However, in a ruling by Justice Binta Nyako on Thursday, it voided all steps taken in relation to the exchange of ownership of Etisalat despite pending orders for maintenance of status quo, restraining parties to a suit, involving investors and other stakeholders in the company, from destroying the res (subject matter).
Justice Nyako, who noted that parties were all aware of the existence of the suit, the defendants having been served between April 24 and 27, 2018 with the originating process, faulted the sale, as claimed by the plaintiffs in a motion filed on November 16, 2018.
The judge held: “Any action that has been taken concerning the rest of this litigation from the 25th day of April, which is earlier in time, should revert to the position, as of the res, to its 25th day of April 2018.”
The ruling, given on April 1, 2019 a copy of which The Nation sighted on Thursday) was in a suit, marked: FHC/ABJ/CS/288/2018 filed on April 6, 2018 by two major investors in Etisalat, Afdin Ventures Limited and Dirbia Nigeria Limited.
Afdin and Dirbia, whose investments in Etisalat is estimated at $43,033,950, had sued to retrieve their investments on the grounds that they were aggrieved, having been excluded from the decision making process of the company.
Defendants in the suit are Karington Telecommunication Ltd, Premium Telecommunications Holdings NV, First Bank of Nigeria Plc, Central Bank of Nigeria, Etisalat International Nigeria Ltd and Nigeria Communication Commission (NCC).