By Modupe Gbadeyanka
One of the main investors in Etisalat Nigeria, which transformed to 9mobile, Spectrum Wireless Communication, has warned companies bidding to buy troubled 9mobile to stay away from it or risk losing their hard-earned money in the process.
Last Friday, Spectrum Wireless Communication obtained a judgment delivered by Justice Ibrahim Buba of a Federal High Court sitting in Lagos, which nullified the appointment of an interim board to oversee the transition of 9mobile to a new investor.
The new owner of the nation’s fourth largest telecoms firm was supposed to be named before December 31, 2017, but was extended to Tuesday, January 16, 2018 (tomorrow).
However, with the latest court judgement, that will likely not happen again because the process, which had Barclays Africa overseeing, has already been quashed by the court.
At a press conference in Lagos on Sunday, solicitors to Spectrum Wireless Communication, J. A. Achimugu and Co. and Dr Reuben Atabo and Co., emphasised that the firm wants its initial investment of $35 million in Etisalat Nigeria returned.
The counsels said Spectrum Wireless Communication was not carried along by Etisalat Nigeria in obtaining a syndicated loan of $1.2 billion from 13 Nigerian banks.
It was the inability of the telecoms’ firm to repay the loan that plunged Etisalat Nigeria into financial crisis, necessitating its takeover and the plan to shop for a new investor for the company.
Five companies have already been shortlisted as top bidders from which a new owner is expected to emerge from.
The five firms are Globacom, Bharti Airtel, Helios Investment Partners LLP, Smile Telecoms Holdings and Teleology Holdings Limited.
But the solicitors have warned these potential buyers to stay off the proposed sale of 9mobile.
“My client wants his money back,” one of the solicitors, Dr Atabo told newsmen at the media briefing.
“Our client and three other investors put in about $100 million as of 2009. The $100 million was used in providing infrastructure for the company.
“It was this infrastructure that gave EMTS the opportunity to go to the banks to obtain the loan of $1.2 billion. Is it proper for United Capital not to recognise the original investor when they got the loan?” he asked.
“We have written series of letters to the Nigerian Communications Commission (NCC) as the regulating body conveying to them our investment and the need for them to come to our aid. They always tell us they are investigating for the past five to six years.
“Assuming they go ahead with the sale, we will not be recognised at all. It is better the issue is sorted out before the sale is completed,” Dr Atabo further queried.
