According to an exclusive report by SaharaReporters, Teleology Holdings Limited has pulled out of 9mobile after only two months of taking over.
9mobile, formerly Etisalat Nigeria, was put up for sale following a default on a $1.2 billion loan owed to a consortium of 13 banks.
After almost a year-long tug of war with the Nigerian Communications Commission (NCC), legislators, Smile Commuincations Limited (the second highest bidder), and aggrieved shareholders of 9mobile, Teleology Holdings Limited acquired the struggling telco in November 2018 after paying a non-refundable cash deposit of $50 million.
Acquiring 9mobile, Teleology announced a partnership with Safaricom, East Africa’s largest network provider, and revealed plans to restructure the company by implementing development strategies that will improve and extend coverage across Nigeria.
Barely two months after, Adrian Wood, Teleology’s Director and pioneer Managing Director of MTN Nigeria is said to have pulled out from the boards of 9mobile and the local joint venture, Teleology Nigeria Limited.
According to reports, Teleology holdings is pulling out because it has become “increasingly uncomfortable with actions taken outside of the agreed business plans” since its takeover.
Apparently, the company has been prevented from concluding a management services contract — which will enable Teleology Holdings oversee the implementation of said plans — with Teleology Nigeria Limited. Following the pull out, Teleology Nigeria Limited would be required to change its name.
It appears that the woes of 9mobile still continue. Would Smile Communications swoop in and save the company? Only time will tell.
NEW REPORT: Nigerian startups raised $28.35m in Q2 2020; only about 4.5% of that came from local investors. Find out more in the full report.
Introducing the Built in Africa podcast, which spotlights African startups, innovators and everything that makes them tick. Listen and subscribe here.
Techpoint Build 2020 is holding virtually in August. Register free now to attend.