Teleology pays $50m non-refundable deposit for Nigeria’s 9mobile

By Kede Aihie

Teleogy Holding, make payment of $50 million non refundeble deposit for Nigeria’s fourth largest mobile network operator (9 mobile, formerly known as Etisalat). They are expected to pay the balance of $500 million in the next 90 days

Teleology was said to have paid the $50 million from Keystone Bank, with United Capital Trustees Ltd and United Bank for Africa (UBA) Plc as beneficiaries.
According to Adrian Wood “the Share Purchase Agreement has been executed, so has the Loan Purchase Agreement. “With the execution of the Loan Purchase Agreement, Teleology will take over the loans of the 13 banks from 9mobile in exchange for a payment plan.
“This means that 9mobile will have no loans on its books and no longer owes the banks since Teleology has assumed the loans. This also means that 9mobile will have a shareholder loan,” he said.
Wood, who after the conclusion of the deal will assume the position of executive vice chairman/CEO of 9mobile, also said Teleology under the Loan Purchase Agreement had commenced the repayment of the $1.2 billion loan owed the banks.
“We have started paying in consideration for taking over the loan portfolio. About half of the loan would have been paid by the time we takeover 9mobile, and we will continue with payments into the future,” he said.

A source close to the company say Mohammed Edewor signed the MoU on behalf of Teleology, while representatives of the Nigerian Communications Commission (NCC), the telecoms industry regulator, and the banks witnessed the signing.
Adrian also said “the shareholders will be unveiled once the transaction is closed, and with the make up of our shareholders, our intention is to make 9mobile a Nigeria-centric operation.” He also said the incoming executive management team put together by Teleology has a combined 374 years experience working in the telecommunications sector.
“We have 12 executives coming in and they comprise five of my former colleagues at MTN such as the ex-CTO and ex-CFO. Others include executives from Orange, Vodafone, Celtel and others.”
On the financial backbone for its takeover bid, Wood said Teleology’s financial support is coming from Afrexim Bank as well as UBS, which is raising equity from international and Nigerian banks.

Author: nmmin

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