NCC, CBN AND OTHER STAKE HOLDERS ARE IN CRUCIAL MEETING AHEAD OF TOMORROW’S PAYMENT DEADLINE FOR TELEOLOGY - Welcome to Soul 2 Soul Mates Blog

Breaking

Welcome to Soul 2 Soul Mates Blog

News Politics Sports Entertainment Gossip Jokes Lifestyles etc.

Post Top Ad

Post Top Ad

7/24/2018

NCC, CBN AND OTHER STAKE HOLDERS ARE IN CRUCIAL MEETING AHEAD OF TOMORROW’S PAYMENT DEADLINE FOR TELEOLOGY


Ahead of tomorrow’s deadline for Teleology to make the balance payment of $251 million to take over 9mobile, the Nigerian Communications Commission (NCC), the Central Bank of Nigeria (CBN) and other stakeholders are meeting today to decide the fate of Teleology in the 9mobile transaction.

Director, Public Affairs of NCC, Mr. Tony Ojobo, who said he did not know if Teleology had made the outstanding payment ahead of tomorrow’s deadline, however, said the NCC, the CBN, 9mobile and other industry stakeholders had fixed a meeting today, where the 9mobile acquisition by Teleology would be discussed.

Barclays Africa, the Financial Adviser handling the sale of 9mobile had in February 21, 2018, named Teleology Holdings Limited as the preferred bidder for the acquisition 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 days from March 21, which will expire tomorrow.

A source however, told THISDAY that Teleology was given an extension of 20 working days to make the payment, following the delay in getting approval letters from NCC and the Security and Exchange Commission (SEC).

According to the source, the closing date for the EMTS/9Mobile acquisition was June 30, 2018, but under the Sale and Purchase Agreement (SPA) Clause 3, there are a number of conditions precedent to closing, among which are letters of approval from NCC and SEC.

The source said NCC and SEC actually transmitted the letters, but that the letters came late, hence the 20 working days, which was granted Teleology Holdings Limited.

The Letter of No Objection from the NCC and a conditional approval from SEC were transmitted late, the source said, adding that the trustees of the bank and Teleology agreed on the extension of the payment date.

Meanwhile Teleology Holdings Limited has said it is ready to make the balance payment, but was awaiting regulatory approval from the NCC. According to Teleology, 100 per cent of the funds due to be paid for 9mobile at closing are sitting in escrow account, awaiting NCC’s approval.

NCC had earlier said it would carry 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 license by Teleology. Although NCC is yet to release its findings on the due diligence carried out on Teleology Holdings, it is believed that today’s meeting will open up discussions on NCC’s findings on the due diligence on Teleology.

9mobile, formerly known as Etisalat Nigeria, became the fourth entrant into the GSM space in Nigeria, when it rolled out its commercial services on October 23, 2008.

But for want of network expansion, the telecoms company in 2013, approached a consortium of 13 local banks for a loan of $1.2 billion for network upgrade and expansion.

However, citing economic downturn of 2015-2016 and naira devaluation, which negatively impacted on the dollar-denominated component of the loan, the former Etisalat Nigeria fell short of repaying the loan, a situation that compelled the banks to plan possible takeover of the telecoms company. The intervention of NCC and the CBN, eventually led to the planned sale of 9mobile in order to recover enough money to pay its debt.

No comments:

Post a Comment

Post Top Ad