…as 16 January deadline for takeover expires
Having been selected among top five strong bidders ogling to acquire 9Mobile telecom as the deadline for takeover closure on the company expires Tomorrow, Tuesday, 16th January, the world waits to see to which side the pendulum would swing.
Since the debt concern, 9mobile, the country’s fourth biggest operator, has lost subscribers. In October 2017, its total number of users dropped to 17.1 million, giving it a 12.2 per cent market share, from 20 million subscribers with a 14 per cent share earlier this year, the telecoms regulator said. South Africa’s MTN, the market leader has 36. Per cent.
Indications are that Globacom, Nigeria’s indigenous telecoms giant, may finally acquire the debt-ridden 9mobile, ahead of other bidders in the race,
Meanwhile, Globacom, Bharti Airtel, Smile Telecoms Holdings, Helios and Teleology Holdings Limited have all been shortlisted as the five bidders still in the running to buy 9mobile, yet, two of the eligible companies have indicated a joint venture (JV) plan that would enable them have the required muscle to outwit others in the last phase of the bid.
A the Nigerian Communications Commission (NCC) and the Central bank of Nigeria (CBN) stipulates a January 16 deadline for receipt of binding offers from prospective bidders to acquire financially challenged 9mobile telecom firm, the dice is cast for the final lap of the acquisition race by prospective new owners.
The regulators approved the deadline, after the deadline following 9mobile’s board request for extension, they also bestowed the responsibility of finding buyers for 9mobile on Barclays Africa, to also review bids submitted before the deadline and make recommendations to 9mobile.
Nigerian lenders picked Barclays Africa to try to find new investors for 9mobile after banks took over the telecoms firm, formerly called Etisalat Nigeria, for defaulting on its loan.
“The winner will now apply to NCC in order to commence the processes for securing the regulatory approvals … to give full effect to the transfer,” the regulator said in a statement.
Etisalat Nigeria took out a $1.2 billion syndicated loan from a group of 13 local banks but struggled to make repayments due to a currency crisis and recession in Nigeria last year.
The Nigerian central bank then intervened to save the company from collapse and prevent creditors from putting it into receivership, leading to a change in its board and management, as well as the new name 9mobile.
The crisis forced the telecoms company’s one-time parent Etisalat to terminate its management agreement with its Nigerian business and surrender its 45 per cent stake to a trustee following the central bank intervention.
Private equity firm Helios Investment Partners has submitted a bid to acquire 9mobile. Nigeria’s Globacom and Bharti Airtel’s local subsidiary have also submitted bids.
On why Glo Mobile is rated higher in the deal by stakeholders, the Nigerian full indigenous telecom firm was adjudged to have strong fundamentals and may not be fronting for any other firm or in any way positioned to strip the company’s assets once acquired.
Owned by Otunba Mike Adenuga, oil and gas magnate and telecommunications billionaire with diverse business interests, Glo Mobile, Daily Times Nigeria gathered enjoys higher positive market and industry sentiment and ranking than other competitors.
Globacom, just like other bidders, plans to acquire 9mobile (formerly Etisalat). If Glo succeeds in the bid, it would eventually emerge as Nigeria and Africa’s number one network, ostensibly based on telecoms’ industry data to be garnered from Glo and 9Mobile business combination.
Bonny Amadi
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