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$1.2bn Debt: New Investors Take Over 9mobile In 6 Months - Phones - Nairaland

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Teleogy Finally Takes Over 9mobile, New Board Of Directors Appointed / No Network Reception On 9mobile In Enugu are they on strike? / Just Like These Companies, Etisalat Will Never Be Called 9mobile In Nigeria (2) (3) (4)

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$1.2bn Debt: New Investors Take Over 9mobile In 6 Months by ijustdey: 1:45pm On Jul 26, 2017
CBN, NCC appoint advisors


Abdulwahab Isa and Kunle Azeez


Bank of Nigeria (CBN), Mr. Godwin Emefiele, disclosed this while providing fresh insight into the telco’s operations at the Monetary Policy Committee (MPC) meeting in Abuja yesterday. According to Emefiele, the advisers have also been appointed to chart a way for new investors for the troubled telecom firm. Already, the CBN governor said potential investors had shown interest and that expression of interests would be opened with advisers advertising the bidding process to the business community.

“The company’s Advisers have been appointed to provide a process for major investors to intervene in the company and take it over. Potential investors have shown interest, so what would happen is that, these interests would be made opened; the advisers would advertise for RSP, everybody can conduct their due diligence after that.

The best will win. Therefore, we are not moved at all for the change,” he said. He also explained that the intervention by the apex bank and the telecoms regulator was done to avert possible job losses as well as protecting the interest of stakeholders.

It would be recalled that the company changed its name from Etisalat to 9Mobile after its foreign partners pulled out. 9Mobile has been facing some financial crises since Mubadala Development Company of United Arab Emirates, the company’s largest shareholder, pulled out its investment from the country.

Mubadala, an Abu Dhabi Government-owned investment and development company, controls about 70 per cent of the shares in Etisalat along with Etisalat UAE mobile, with Emerging Markets Telecommunications Services (EMTS), promoted by Hakeem Bello- Osagie, owning the remaining 30 per cent. Although reports from NCC revealed that Etisalat had been attracting more subscribers porting from other networks to its network, it has, however, lost over 3.5 million subscribers.

However, Emefiele said in spite of its seeming challenge at the moment, 9Mobile recorded N16 billion revenue in June this year.

“The issue is that, whereas the regulators, the NCC and the CBN, in this case, businesses and companies that operate in the telecoms market, should operate profitably, but we also expected that whatever decision they take should not be such that would affect other stakeholders in that industry.

“We all know that Etisalat is one of the four biggest telecommunication firms in Nigeria, with a subscriber base of over 20 million; and of course, we also know that the revenue base of the company is also very robust.

“It is important that we should not just allow any creditor who feels disadvantaged, to take a decision that hurts other important stakeholders that operate within Etisalat.

“That was what the NCC and the CBN observed that the activities and the attempt by some creditors were going to leave a dismemberment of that company and we could not allow the millions of subscribers to be running helter-skelter without services, and that we could not allow 4,000 or more employees of this company to just run in disarray because something wrong has happened,” he added. Emefiele explained the reason why NCC, supported by the CBN, decided to intervene.

“We only came in to say, ‘please gentlemen, we understand all your interests in this company either you are a creditor or stakeholder, let’s take things easily so that we do not hurt the interest of others who also have interest in this company,” said Emefiele while justifying the intervention.

According to him, “the intervention has been positive, and Etisalat has retained its subscriber base. Its 4,000 staff have continued their work and, indeed, the revenue for the month of June has remained stable at not less than N16 billion.

“A lot of people, who were watching from the sideline thought that Etisalat’s revenue was going to drop drastically and that there was going to be slide to subscriber base, but that was not the case.

“The intervention through the institutionalisations of an interim board, headed by the regulators, I must say here is temporary and our plan is that it should not take more than maximum 90 to 180 days.”

Also, Mr. Adebayo Shittu, the Minister of Communications, yesterday said the Federal Government stepped in to the crisis to save Nigerian employees as well as subscribers. Shittu, in a statement issued by Mr. Henshaw Ogubike, the Deputy Director, Press in the ministry, said the Federal Government would not fold its hand and allow the company to die, in view of its economic importance to the nation.

According to him, about 20 million Nigerians subscribe to the network, many are employed by it, Nigerian banks are stakeholders, hence the government’s quick intervention to rescue the company from creditors determined to take over the company.

The minister assured the management that the Federal Government would always support the telecommunication sector by providing an enabling environment for the industry to thrive. Earlier, Mr. Boye Olusanya, leader of 9Mobile management team, commended the minister for the role he had played to ensure that the company did not fold up.

Boye requested the minister to also intervene in the areas of multiple taxation, foreign exchange, Right of Way (RoW) and security of infrastructure that would ease operations in the sector.

According to NCC, 9Mobile subscribers have crashed from 22 million to 18.5 million as at the end of May this year.

Apparently realising the financial difficulty being faced by Etisalat (now 9Mobile), following its $1.2 billion loan crisis, advisors have been appointed for the mobile telecommunication firm to scout for major investors for the company.

The appointment of the advisers was made by the new board at the telco in collaborations with the Central Bank of Nigeria (CBN) and the Nigerian Communications Commis-sion (NCC).

The regulators said the processes for new investors to take over the telecommunication firm are expected to be completed between 90 and 180 days. The investors will take over the troubled telecoms company for proper operation and financial turnaround. Governor of the Central


https://newtelegraphonline.com/2017/07/1-2bn-debt-new-investors-take-9mobile-6-months/


lalasticlala
Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by baralatie(m): 2:35pm On Jul 26, 2017
let us see what they bring to the table!
Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by Mistermamus(m): 3:03pm On Jul 26, 2017
na dem sabi
Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by Oladelson(m): 3:43pm On Jul 26, 2017
is okay
Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by burkingx(f): 3:43pm On Jul 26, 2017
grin

3 Likes

Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by NwaAmaikpe: 3:43pm On Jul 26, 2017
shocked


The Telecommunications industry will be forever haunted till FG pays ex-NITEL staff their entitlements.

6 Likes 1 Share

Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by Flashh: 3:44pm On Jul 26, 2017
Mistermamus:
na dem sabi
Abi na.

5 Likes

Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by Nodogragra4me(m): 3:44pm On Jul 26, 2017
A Nigerian Moneybag is coming to pick it up. ...All it makes is re negotiate the loan and drop like 400m dollars to ease the cash crunch within banks and then run along


Right now the person is just looking for the jipuice in the firm like

1 Like

Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by three: 3:45pm On Jul 26, 2017
Something isn't adding up

If you are patient enough read through this article by one Dr. Kazeem Bello

_____________________________________________________

NIGERIA'S ECONOMIC ISSUES!!!
The Etisalat Example...

The Abu Dhabi Government that owned Etisalat pulled the company out of Nigeria last week and gave the Nigerian ex-partners 7 days to change its name and drop its Trade name. That has been complied with. Etisalat Nigeria changed the name this past week. The news information about this I monitored on my travel to Dubai on the local news which indicated that the Nigerian Etisalat claimed it invested over $20 billion on equipment and facilities in Nigeria. The news Analyst from Dubai Business New Network TV insisted that it is not possible. The parent company invested $13 billion in Gulf Area to attract over 40 milllion subscribers, with high world class services , how can Etisalat Nigeria invest $20 billion for 22 million subscribers with epiletic services and a debt ridden company?

The Abu Dhabi home office is struggling to remove the negative effect of the news on the company's stock market performance. It is being very difficult becuase the numbers are not adding up. The questions in Abu Dhabi is what does Etisalat Head quarters know about the mammoth fraud that prevailed in Etisalat Nigeria? How can the company claim to have spent so much in investment and infrastructure and yet come out with huge debts?

While Etisalat Group is facing serious backlash at home over this monumental fraud, in Nigeria, our CBN is not even asking any question to unravel why the company suddenly went bankrupt. Instead, our CBN and Ministry of Finance from the above are stuggling to take over the company's debts and pass it to the unsuspecting tax payers under the umbrella of the debt ridden AMCOM.

The Chairman of the Board and all Board members of the defunct Etisalat Nigeria resigned and walked away free leaving Nigerians with another private sector mismanaged debt ridden company.

Actaully, the major reason for my worried contribution here is on the Banking System in Nigeria and the financial mess we may have found ourselves in. Many Nigerians may not know this for a fact because the authorities will never tell you the truth, just like it took several years of noise for the NNPC to admit that the corporation is debt ridden and bankrupt. The Government of Nigeria will not admit it that the CBN of Nigeria is currently running at a Deficit Financial Model. This is called a DEF Model operations in Central Banking structure and practice. For references, you can google " Greece Monetary Collapse" and also the great fall in Brazilian financial system in the 90's. The CBN is almost at those crescendo from all indications going by several body languages, utterances and news from the international financial circle.
The CBN may not be able to cover import bills for more that 15 days from now as we speak which is a huge red flag! The CBN is currently not in any position to bail out the Government in any form due to distress in its liquidity-money creation matrix. CBN cannot perform its role as lender of last resort to the Government of Nigeria as we speak, a major function of Central Banking system. This may be the reason why last week, the Hon Minister of Finance addressed a press conference to tell Nigerians that they are in trouble but most Nigerians just did not understand how to interpret her unspoken words. She said clearly that Government will have to aggressively borrow money from abroad to implement the 2017 budget. Her reason was predicated on the wrong and super inferior analysis that Nigeria has a low debt-capital ratio hence there are rooms for more external debts. We better find a way to stop her from running a huge debt that OBJ was able to clear up during his regime but was kept low during Jonathan's regime due to oil windfall which makes borrowing unnecessary then.

Now with dissapointing and falling oil prices, low income-revenue generation by Government, NNPC totally broke running at huge deficits, CBN's inability to bail out Government, we seem to have no choice than to go back to external borrowing at premium at all cost.

Something is pathologically wrong with the Nigerian system. I have written about this in early December 2016 when the budget estimates came out. I pointed to the totally wrong budget appropriation and tagged it a budget of " Economic Contractions". I mentioned that by 3rd quarter of the year, the bubble will burst if something is not done and the Economy may slide into a full blown depression far worse than recession. It is not known what the facts are right now because there are various attempts to hide facts and give erroneous figures to the unsuspecting public. The situation is really bad based on International Analysts facts and figures especially with perceived unadmitted dire financail crises at the CBN. We may see an Econimic Emergency Bill very soon showing up at the desk of the Senate President but with the current face off between the Acting President and the Senate leadership, it is doubtful if such required bill will ever come to surface. That will be an instrument for the " hawks" in the Senate to roast the Acting President and blackmail him further of incompetence. In the fight between two giant elephants, the grass will have to pay dearly and suffer for it. Nigerians will grow in more poverty, no power, no infrastructure, high inflation, and low economic activities and no salaries for work done.

Back to the Etisalat case, this is the fact of the matter and CBN has not deemed it fit to raise any probe on the huge bank lendings to one single company without adequate collateral. Indeed what asset does Etisalat own aside from its license that will be worth the amount of debts being cited? I don't live in Nigeria but at least on my visits, I have not seen any such assets except power masts all over the place.

The same Nigerian Banks gave billions to all the debt ridden GENCOs AND DISCOs with no collateral and yet we have no power. Again, I have written on this issue before. How the power system in Nigeria was defrauded by the collusion of the so-called investors, Nigerian Banks and some officials in the defunct FGN. Nigerians are very prayerful people, we are still trooping to the worship places to pray for steady power supply when some are swimming in billions from the fraud in the sector. Our dream for steady power supply is daily becoming a mirage, to say the least.

The other day, I was having a discussion with a Chinese group of investors on telephone and internet network projects. They mentioned that with about $5 billion dollars in investment in highly powerful telecom equipments and satellite infrastructure, they will supply over 120 million in Nigeria with highly efficient phone and internet network service with super easy, small and latest technology. So why is Etisalat with $20 billion in investment not able to supply good phone and internet network service in Nigeria? Yet poor Nigerians are paying for poor services and will again pay the company's debt through our taxes.

Nigeria needs a fix!!!

Dr. Kazeem Bello

30 Likes 4 Shares

Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by Heartmender1: 3:46pm On Jul 26, 2017
At last!! Tekno finds his secondary school friend minutes after placing #200,000 price tag(photos)
http://www.amiloaded.com/2017/07/at-last-tekno-finds-his-secondary.html?m=1

Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by ahhdah(f): 3:46pm On Jul 26, 2017
Ee eh yah..
Kpele
Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by LilSmith55(m): 3:46pm On Jul 26, 2017
What about Visafone
Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by Nobody: 3:46pm On Jul 26, 2017
Ayamtayad Hof Dis kontri

Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by mastermistress: 3:47pm On Jul 26, 2017
good
Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by Untainted007: 3:47pm On Jul 26, 2017
Haba, the debt is too much oooooo. When all they keep doing with their profit is paying Etisalat Ambassadors who has nothing to offer back and also embezzlement from top managers. Glo Ambassadors still chopping their own money while MTN quickly backed out of Who Wants to Be a Millionaire when they are almost bankrupt.
Business is about proper planning and one must not bite more than he can chew at once. Wishing the new investors good luck.

1 Like

Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by sirfemoz(m): 3:47pm On Jul 26, 2017
Another Change of Name coming up.
Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by dbynonetwork: 3:48pm On Jul 26, 2017
Blame BUHARI
Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by younglleo: 3:48pm On Jul 26, 2017
how em take remove dis hair for my armpit..?
Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by Nobody: 3:48pm On Jul 26, 2017
A beg oo
Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by Nobody: 3:49pm On Jul 26, 2017
The fraud that was pulled by using Etisalat as a Special Purpose Vehicle to enjoy multinational bank loans is the kind of fraud I will like to commit.

Now another investor is coming in and the cycle will continue. This is what happens when you have idiots in government houses. Minister of Finance that can not look a man in the eye and tell the truth without getting wet. And a telecoms regulatory commission that partners with fraudulent Telcos to steal from consumers.

Even the African Gods like Sango, Amadioha and Chukwu Akike Abiama has abandoned us, Jehovah and Allah boys are also pulling 10% and other commissions out of the economy every other Sunday.

Is this a country ?

1 Like

Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by Nobody: 3:53pm On Jul 26, 2017
Mtchewwww, yeye network.
Photographers only please. Don't dare visit if you are not a photographer www.fototech.com.ng
Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by HottestFire: 4:00pm On Jul 26, 2017

Cogratulations to the new management of 9mobile.
Sincerely speaking, the etisalat debt issue is the main reason foreign investors are scared of committing their funds into Nigeria.
With unstable exchange rate yet we found it easy for some privileged few to get dollars at a ridiculous rate.

Who in the right sense will want to pay such humongous debt just under 10years.

cry
Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by Nobody: 4:03pm On Jul 26, 2017
The East should have this oh.....

Etisalat ( now 9mobile) - Outsider (Best - Developers needed to sustain shocked)
MTN - Outsider (Good)
Airtel - Outsider (Fair)
Glo - West (extremely poor)
Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by Slymonster(m): 4:07pm On Jul 26, 2017
and then a new investor comes in and doesn't like the name 9mobile. lol another change of name
Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by kalemy(m): 4:12pm On Jul 26, 2017
I strongly blame buhari for this
Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by AngelicBeing: 4:25pm On Jul 26, 2017
sad
Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by Realdeals(m): 4:31pm On Jul 26, 2017
I suggest NCC should pause porting from the network for now.
Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by alt3r3g0: 4:55pm On Jul 26, 2017
Will the new investors be given the same terms as Etisalat? If not, why did they not shift ground before it got to this point?
Re: $1.2bn Debt: New Investors Take Over 9mobile In 6 Months by mikejj(m): 5:00pm On Jul 26, 2017
9mobile hope it won't b 9mugu.let's observe first

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