Teleology commits to 9mobile with $50M deposit

Teleology Holdings has agreed to buy 9mobile, Nigeria’s fourth largest telecoms provider, the investment firm said on Thursday.

9mobile, formerly Etisalat Nigeria, took out a $1.2 billion syndicated loan from 13 local banks in 2013 but failed to make repayments last year. Under the stewardship of its lenders, it has changed its board, management and name and is now up for sale.

Teleology said it had made a $50 million deposit to meet conditions for the acquisition and had partnered with Safaricom to transform debt-laden 9mobile.

Teleology plans to double the 9Mobile network with new 3G and 4G-specific cell sites, along with several thousands kilometres of fiber optic cable across the country.

It is looking to drive rural internet coverage by focusing on 4G with broadband access for all of Nigeria’s 774 local government areas. It also plans to increase employment by 50 per cent and wants to introduce “several million 4G-capable premium quality smartphones, at exceedingly affordable pricing”.

Teleology also entered into an alliance with Safaricom to tap into the potential of mobile money services.

Teleology was set up by 12 telecoms industry veterans led by ex-MTN Nigeria executive Adrian Wood.