March 26, 2018

Some capital market stakeholders on Monday appealed to Telelogy, the new owner of 9mobile, to resolve amicably the 1.2 billion dollars syndicated loan owed some Nigerian banks.

The stakeholders made the appeal in separate interviews with the News Agency of Nigeria (NAN) in Lagos, while reacting to the emergence of Telelogy as the new owner of the firm.

Prof. Sheriffdeen Tella, the Professor of Economics, Olabisi Onabanjo University Ago-Iwoye, Ogun said the new owner should consider the outstanding loan as paramount.

Tella said that an amicable resolution of the loan would bring stability to the telecom industry.

He suggested that the laws guiding the establishment, operations and funding in the industry should be reviewed to enthrone an enabling working environment in the sector.

“There is the need to encourage telecom firms to enlist on the Nigerian capital market to raise funds whenever they are about to run into troubled waters financially.

“Eventual sale of 9mobile to a new private concern will lead to improvement in the services provided by the telecom firm, build confidence in the telecom industry and create employment,” Tella said.

Mallam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., said that if the new service provider settled the debts, it would bring a relief to the indebted banks.

Kurfi said the restructuring of the loan by Telelogy and eventual payment would reduce the banks liabilities.

“It is a great relief to the Central Bank and particularly to the banks that have huge exposure,” he said.

Mr Boniface Okezie, the President, Progressive Shareholders Association of Nigeria (PSAN) described the development as good news to the shareholders of indebted banks.

Okezie said the loan repayment would enable the affected banks to recoup their money as a result of the loan to 9mobile.

He called on the affected banks to work closely with the new owner to ensure prompt repayment of the loan.

NAN reports that Teleology Holdings Ltd. beat the March 22 deadline for transfer of a non-refundable deposit of 50 million dollars for the acquisition of 9mobile.

Teleology emerged the new owner of 9mobile ahead of Smile Communications, which was the only other firm in the final round of the takeover bid.
At the beginning of submission of bids, more than 10 bidders indicated interest in acquiring the mobile network, but only five were shortlisted.

The five firms are Bharti Airtel, Globacom, Helios Investment, Smile Communications and Teleology Holdings.

The acquisition bid resulted when the largest shareholder, Mubadala Development Company of the United Arab Emirates, (formerly Etisalat), pulled out of the firm.