The Nigerian Communications Commission (NCC) has extended the July 25 payment deadline given to Teleology Holdings Limited, to make the outstanding payment of $251 million to take over 9mobile.
The Chief Executive Officer of 9mobile, Mr. Boye Olusanya, disclosed this in a statement Thursday.
According to Olusanya, the extension of the timeline was considered necessary to enable parties involved in the sale process to finalise the requisite transaction documentation to facilitate a smooth closure and transition to the new investor.
The parties involved include the NCC, the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC) and 9mobile.
“The Board of 9mobile is pleased with the progress made thus far and expects the acquisition process to be completed as soon as possible.
“Further updates in this regard will be provided in due course. We hereby thank our invaluable customers for their support and reiterate our continuing commitment to providing best-in-class telecommunication service,” Olusanya further said in the statement.
Although the duration for the extension was not stated in the statement, THISDAY, however, gathered from a source close to Teleology that the duration period is 20-working days.
All attempts made to confirm the development from NCC proved abortive as its Director, Public Affairs, Mr. Tony Ojobo, could not be reached.
The CBN’s Director of Communication, Mr. Isaac Okoroafor, could also not be reached for confirmation of the extension of time.
THISDAY, however, learnt that the board of NCC was scheduled to meet Thursday to consider the status of the transaction, particularly the report of its committee saddled with the responsibility of conducting due diligence on the technical capability of Teleology.
Barclays Africa, the Financial Adviser handling the sale of 9mobile, had in February 21, 2018, announced Teleology Holdings Limited as the preferred bidder for the sale of 9mobile and Smile Telecoms Holding as the reserve bidder.
Barclays Africa had directed Teleology to make an initial non-refundable cash deposit of $50 million within 21 days, which expired on March 21, 2018, and then pay the balance of $251 million within 90 working days from March 21, which ended July 25.
But Teleology came up to explain that the actual expiration date to make final payment was June 30, but that it was given additional 20 working days to make payment, following delay in the approval letter from NCC.
THISDAY gathered that the NCC and SEC were supposed to transmit letters of approval for the sale of 9mobile before Teleology could make payment.
Confirming the information, Teleology told THISDAY that it had already sourced the $251 million balance money and kept same in an escrow account, awaiting the regulators’ authorisation letters for it to effect payment.
The NCC had said it was carrying out due diligence on Teleology Holdings to ascertain its financial strength and technical capabilities to take over 9mobile before it would approve the use of 9mobile licence by Teleology.
But the regulator was yet to release its findings on the due diligence carried out as well as transmit the letter of approval for the sale of 9mobile, a situation, sources said, was largely responsible for the delay in payment.
