- LH Telecoms Limited, a UK-based telecoms company, has acquired a majority stake in Emerging Markets Telecommunication Services Limited, trading as 9Mobile.
- The company disclosed on Sunday that the acquisition of a controlling stake in the Nigerian telco received the necessary approvals from the Nigerian Communications Commission (NCC) and the Federal Competition and Consumer Protection Commission (FCCPC), as required by law.
- The African Export-Import Bank (AFREXIM), which was 9Mobile's main lender in May 2023, approved the investment that led to a change in control. The new investor received 95.5% of 9Mobile's shares in return for a major capital injection.
9Mobile has appointed a new board of directors following recent developments.
While Obafemi Banigbe has been named Managing Director and CEO, Thomas Etuh is the Chairman of the Board. With over 36 years of experience in telecommunications, agriculture, and banking, Etuh is the founder of the Tak Group of Companies and has previously served on the boards of Unity Bank Plc and Notore Chemicals Industries Plc.
Other board members include:
- Nahim Abe Ibraheem, who has over 30 years of expertise in finance, oil trade, and procurement.
- Femi Edun, a financial services expert with 35 years of experience from roles at Deloitte and PricewaterhouseCoopers.
- Senator Daisy Ehanire Danjuma, Executive Chairman of SAPETRO, with extensive leadership roles in various foundations and companies.
- Michael Ikpoki, former CEO of MTN Ghana and MTN Nigeria, and current leader of Africa Context Advisory Partners.
- Ibrahim Puri, a finance professional with over 30 years of experience.
- Gloria Danjuma, who brings over 20 years of leadership across multiple industries.
- Emmanuel Etuh, Executive Director at Lighthouse Capital, overseeing corporate services.
Per the company, the new leadership team will help guide 9Mobile through its transition and recovery, marking an important step in improving the company's market position.
This development follows reports from nine months ago about MTN Nigeria's discussions with 9Mobile regarding a potential spectrum acquisition. At that time, there was speculation that the deal could lead to MTN acquiring 9Mobile, raising concerns about the potential establishment of a monopoly by MTN.
The spectrum deal was perceived as a strategic effort to rescue 9Mobile, which has been grappling with difficulties after the departure of key technical partners and investors.
However, the National Association of Telecoms Subscribers (NATCOMS) urged the NCC to prevent MTN from acquiring 9Mobile, citing concerns that such a move could result in an oligopoly in the telecommunications sector.
What’s more, in the first quarter of 2024, 9mobile lost 6,443 subscribers, representing 72% of the total 9,000 porting activities reported by the NCC. During the same period, MTN experienced a loss of 473 customers, Airtel had 950, and Globacom recorded 1,143 outgoing portings.