The Nigerian Communications Commission (NCC) has confirmed receiving a payment of $50 million, being the 10% non-refundable fee for the acquisition of 9mobile by Teleology Holdings Limited
The down payment, according to the telecommunications industry regulator, is to seal the acquisition deal for the acquirer. However, Teleology has a window of 90 days to pay up the remaining $450 million.
And failure to meet up with the balance within the stipulated period would result in Teleology losing the acquisition deal to Smile Communications for $300 million.
Punch has it that the commission’s Executive Vice Chairman, Umar Danbatta made the confirmation at a meeting with the Governor of the Central Bank of Nigeria, Godwin Emefiele. It was also at the meeting that the two regulatory authorities entered into an agreement that allows telecommunications company play in the country’s payment sector.
According to a last week report, both NCC and CBN denied receiving any down-payment with respect to 9mobile’s acquisition. The board chairman of NCC, Olabiyi Durojaiye, alongside the Chairman, House of Representatives Committee on Telecommunications, Saheed Akinade-Fijabi were also reported to have made moves to halt the acquisition process.
The move by the lower house of the National Assembly and that of NCC chairman questioned the interest of the government in the sale of 9mobile.
If Teleology is able to pull through with the acquisition, subscribers on the 9mobile network would surely benefit from the partnership deal between Teleology and East African giant, Safaricom.
Nigerian startups raised $377m in 2019, more than twice what they did in 2018. Find out more when you download the full report.