Teleology holdings limited has completed the payment of $351 million, bided to take over ownership of the debt-ridden 9mobile telecommunications and now awaits a transfer of the license by the Nigerian Communications Commission (NCC) in order for the consortium of banks to hand over the operation to the new owners.
BusinessDay confirmed on July 10, 2018, that Teleology made the final payment of $301 million, following the initial $50 million paid as a non-refundable deposit in March 2018 to show commitment on the sale of 9mobile.
One of the bank managing directors being owed confirmed to BusinessDay that “we have seen the money.”
Teleology and United Capital Trustees signed the Share Purchase Agreement (SPA) and Loan Purchase Agreement (LPA) on 21st March 2018 after receipt of confirmation of the non-refundable deposit and the Central Bank of Nigeria (CBN) and NCC were present at the ceremony.
Although the final decision on when 9mobile licenses and operations will be legally transferred to Teleology lies in the hands of the NCC, teleology has played its part by fulfilling all obligations as directed by Barclays Africa, the financial adviser to the owed banks.
Sources tell BusinessDay that there are two processes involved in the sale, one of which is the payment which Teleology has fulfilled and the other is getting the NCC to transfer the license rights to the new owners which may hold up the sale for a while because 9mobile is said to be owing the NCC debts of up to N8 billion including spectrum fees of N2.4 billion and payments of 2 and a half percent of gross revenues which have not been fully cleared since the crises erupted.
“However the company has been able to pay N2.4 billion out of the N8billion and has arranged a payment plan for the outstanding N5.6 billion. NCC might on this ground decide to delay license transfer to the new owners until all debts have been cleared,” a source familiar with the deal told BusinessDay.
Sources tell BusinessDay that 9mobile had believed since they have paid the spectrum fees they would be allowed to conclude the transaction with Teleology.
“9mobile has provided a payment plan to NCC for the balance of N5.6 billion being owed to the regulator,” another source told BusinessDay.
Notwithstanding, it has been observed that the ability for 9mobile to pay out the sum of N2.4 billion to the telecoms regulator, even after recent strain on the business shows that the company is still viable and has strong cash flows at the top line.
The CBN Governor Godwin Emefiele said last year that 9mobile revenues were holding up at about N16 billion a month.
Efforts to reach Umar Garba Danbatta, executive vice chairman, NCC and Tony Ojobo, director of public affairs NCC proved abortive as neither of the two answered phone calls or replied text messages sent to ask if NCC had been notified of the said payment and how long it will take for regulatory approval of license transfer to the new owners.
Recall that BusinessDay exclusively reported in May 2018 that Teleology’s Nigerian shareholders Omar Farouk Edewor and Mohammed Edewor who are also the directors of the company are in talks with financial advisers to source equity in-order to pay up the balance of its $301 million financial bid for 9mobile.
Our findings revealed that the holding company registered Teleology Nigeria Limited under the corporate affairs commission (CAC) with the address of 155, Broad Street Marina Lagos, and share capital of N100 million, in December 2017 mainly for the acquisition of 9mobile, Nigeria’s fourth largest telecommunication operator.
Informed sources say that “although Adrian Wood is the promoter of Teleology and part of the management, he is not actively involved in raising equity but the listed company directors, as well as some other partners, were then sourcing funds to close the deal.”
“It is also possible that the Omar Farouk Edewor and Mohammed Edewor are nominee shareholders and the company might decide to do a transfer of shares after the ongoing transaction is closed,” Our source said.
Olusola Teniola, President, Association of Telecommunications Companies of Nigeria (ATCON) told BusinessDay that teleology holdings limited which operates as a private equity firm hired UBS to help it raise the $300 million from local banks and investors.
Teleology had prior to now, detailed a 10 point plan to turnaround the debt-ridden 9mobile.
Wood said the new organization to emerge would be “engineering led and brand driven.” In delivering service, “we will strive to ensure that 9Mobile operations deliver fulfillment to our customers, empowerment to local communities, protection to the vulnerable and excellent rewards not only to our shareholders but to all stakeholders.”