Here are 5 likely reasons why Adrian Wood's Teleology is yet to takeover 9mobile
The government is still making final touches to the structure, financial capability and technical know-how of Teleology to run one of the largest mobile networks in Nigeria
Teleology, an investment firm led by the former MTN Nigeria chief, Adrian Wood, emerged as the preferred bidder in February 2018, following a bid process arranged by Barclays Africa, after a debt default forced Etisalat out of the country.
Several reports have it that bureaucratic and administrative bottlenecks are slowing down the sale processes.
Business Insider Sub-Saharan Africa looks at some of these hindrances delaying the official buyout of 9mobile on both sides:
1. Accumulated Debts
In a report by Thisday newspaper, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Prof. Umar Danbatta explained that the delay in the conclusion of the sales of 9 mobile was as a result of 9 mobile debt to the commission. The regulatory chief said the mobile network was indebted to the tune of over N15 billion in Annual Operating Level (AOL), fees and numbering fees. He said 9 mobile had paid about N7 billion out of it as a commitment.
2. Technical capability and structure of Teleology
The regulatory authority had conducted the first round of technical competence on Teleology. Though details of the first technical appraisal were not released. The Commission said it is conducting another round of due diligence on the preferred bidder.
3. Legal case instituted by aggrieved shareholders
There is an ongoing legal case before the Federal High Court in Abuja. The case was instituted by some aggrieved shareholders of 9mobile over the sale of the mobile network.
The shareholders – Afdin Ventures Limited and Dirbia Nigeria Limited, warned the Central Bank of Nigeria, Nigerian Communication Commission and others to halt the sale of the telecommunication firm.
4. Financial evaluation of Teleology
In March 2018, Adrian Wood, Teleology's director, confirmed that that the company transferred a non-refundable deposit of $50 million to the trustees of the Nigerian bank syndicate presently holding ownership of 9mobile.
Wood said the payment underscored Teleology’s financial capability and readiness to revive the organisation, adding it was set to aggregate a 10-point to turn 9mobile around.
Teleology was given a period of 90 days to pay the balance of $251 million but missed the deadline on June 30, 2018. The window was extended for another 20 days and elapsed again in July 2018.
5. Nigerian government administrative bottlenecks
According to a Thisday report, Teleology blamed the Nigerian Commission Commission for missing the deadlines on the delay of approval letter of 'No Objection'.
It said it had sourced $251 million and kept in an escrow account waiting for Nigerian regulatory agencies letters before making financial payment.
The government is still making final touches to Teleology Holdings Limited organisational structure, financial capability and technical know-how to run one of the largest mobile networks in the country.
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