Teleology Holdings Limited has requested for a 20-day extension to pay the final bid price for the acquisition of telecommunication company, 9mobile.
NAN reports that a source close to Barclays Africa says Teleology communicated its commitment to the payment of the final bid price to the apex bank days ahead of the expiration of the 90-day payment timeline, which lapses on Saturday, June 30.
The source said the preferred bidder requested 20 working days’ extension from the CBN “to enable it to perfect the process for the final payout in consonance with the provision of the acquisition agreement.”
A CBN source told NAN that the firm is in order in triggering the 20-day extension as it is contained in the agreement.
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The source said the regulator had granted the request by Teleology for the extension but with a provision that it must pay additional non-refundable $50 million to further strengthen its stake in the acquisition bid for 9mobile.
“What Teleology has raised offshore exceeds the initial acquisition cost. It is inclusive of the amount needed for an audacious network expansion project for 9mobile,” a source in NCC said.
“I can confirm this will change the telecoms landscape significantly. The money coming will include the cost of over 5,000 additional base stations and a bullish acquisition of other fringe players in the telecoms sector to add to the 9mobile brand household.”
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Teleology had on March 21 paid the initial $50 million non-refundable deposit as a demonstration of its commitment to acquire 9mobile and was given a 90-day timeline to pay the balance.
The process for the acquisition of 9mobile commenced in October 2017. It is being supervised by Barclays Africa, the transaction adviser appointed by the CBN, the Nigerian Communications Commission (NCC) and the consortium of 13 banks.
The bid for the sale of 9mobile equities followed disagreement between Emerging Markets Telecommunication Services Limited (EMTS), formerly trading as Etisalat Nigeria, and the banks to restructure the repayment of a seven-year mid-term facility secured by the telco to service an existing loan and expand its network in 2013.
Teleology Holdings is a firm run by Adrian Wood, former chief executive officer (CEO) of MTN Nigeria.
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The company is a special purpose vehicle set up by Wood and some influential Nigerian investors to acquire the troubled 9Mobile.
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