9mobile buyer, Teleology gets 90 days to cough out $450 million

9mobile buyer, Teleology gets 90 days to cough out $450 million

There are indications that Teleology Holdings, the preferred bidder for 9mobile will need to pay up its bid to acquire the mobile carrier.

It could be recalled that Barclays Africa, the financial advisor to 9mobile in the deal had announced that Teleology Holdings was the preferred bidder in the proposed acquisition for Nigeria’s fourth-largest mobile carrier.

Teleology had bid to buy 9mobile for $500 million, a bigger figure compared to what its competitors in the transaction proposed.

The head of Nigeria’s telecom regulator, the Nigerian Communications Commission (NCC), Executive Vice Chairman Prof. Garba Umar Danbatta disclosed that should Teleology fail to make the payment, Smile Communications Limited, will be given the opportunity to take up the bid.

The company had paid the mandatory $50 million and according to the terms of Barclays, it will have another three months to pay up the remaining $450 million. Failure to do so will lead to a cancellation of the deal and the second preferred bidder will be given the opportunity to take up the position.

Neither Barclays Africa nor Teleology Holdings have not commented on the matter.

Formerly called Etisalat Nigeria, 9mobile was taken over by Nigerian lenders after it could not pay up its $1.2 billion debt.