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Globacom May Not Buy 9Mobile Because of Alleged $282m, N1.499B Debts

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Globacom May Not Buy 9Mobile Because of Alleged $282m, N1.499B Debts

Globacom May Not Buy 9Mobile Because of Alleged $282m, N1.499B Debts

According to reports, Nigeria’s second-largest telecommunications network, Globacom, may not be able to buy Telecommunications company 9Mobile which was formerly known as Etisalat Nigeria.

The Nigerian owned telecommunications company Globacom had issued a statement in January 12, 2018, saying:

“Globacom has not acquired 9Mobile as widely reported in the media. We are bound by the terms of the acquisition process as stipulated by the authorities handling it and we will not in any way sway or deviate from the rules.

“We repose confidence in Barclays Africa, the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) which are handling the process that will lead to the emergence of a new owner for the company,” the statement read.

However,  the Company has some outstanding fees with the Nigerian Communications Commission (NCC).

According to reports, Globacom has not paid renewal of its spectrum license which is a total of $282 million for another ten (10) years. The company is also owing N1.499 billion in microwave fees after the expiration of the initial term last year, ALEDEH gathered.

On Friday, January 12, a federal high court sitting in Lagos, Southwest Nigeria, nullified an ex parte order which it granted in July 2017 which had given legal backing to the interim board set up by Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) to manage the transition of the telecommunications company following a debt crisis.

The nullification follows dismissal by Justice Ibrahim Buba of the Federal High Court, the Preliminary Objection filed by United Capital Trustees Ltd in response to the application by Spectrum Wireless, a shareholder of EMTS, for a nullification of the Ex Parte Order of the court, which it claimed was obtained by misrepresentation of facts that alienated its interests in the company.

On Sunday, January 14, Spectrum Wireless, a shareholder of Emerging Markets Telecommunications Service (EMTS) which owns 9mobile licence, warned buyers not to acquire the telecommunications company.

J.A. Achimugu & Co, Solicitor to Spectrum Wireless Communication Limited, issued “Beware Notice” to buyers, stressing that “any institution or company who transacts business for the purpose of sale or acquisition of EMTS or 9Mobile does so at his or her own risk”.

9Mobile was taken over in July 2017 following N541 billion debt overhang.

 

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