9mobile's Headache Persists As Teleology Pulls Out Of Deal
Telecom operator, 9mobile’s headache was thought to be over after it entered a deal with Teleology to buy it over and clear its mountain of debt.
But this is not to be as months after Teleology Holdings received approval to take over the operations of 9mobile as the preferred bidder, Teleology has pulled out.
The company said it decided to pull out of the 9mobile project because it was dissatisfied over the business relationship with its local partner, 9mobile Nigeria.
According to a Thisday report, based on the current situation, Teleology Holdings Ltd will be seeking to exit its shareholding in the local joint venture, Teleology Nigeria Limited, which will be required to change its name.
This development will put the $50 million initial deposit paid for the acquisition of 9mobile by Teleology Holdings, in jeopardy.
Sources close to the 9mobile organisation told the paper that Teleology Holdings had become increasingly uncomfortable with actions taken outside of the agreed business plan, since the November 12, 2018 formal take-over of 9mobile.
According to the source, Teleology Holdings has been blocked from concluding a management services contract with the local joint venture, Teleology Nigeria Limited.
The management services contract would have enabled Teleology Holdings and its team of experts oversee the implementation of the organisation’s elaborate business plans including funding proposals.
It is not clear if this development is connected with the recent allegation that President Muhammadu Buhari’s relative, Issa Funtua has used his connection with the authorities to influence the deal.
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