Teleology Buys 9mobile: 7 Things You Need To Know
So, news filtered in on Wednesday that Teleology, a company that won the bid to buy debt-laden 9mobile has made commitment payment, kicking off in earnest the full acquisition process.
Here are 7 things we know about the acquisition.
1. It Is Not Over Yet: Teleology still needs to pay a balance of its $500 million bid for 9mobile within 90 days, before assuming full possession of the company.
2. 9mobile Is Now Debt-Free: Former CEO of MTN, Adrian Wood, who led the Teleology bid for 9mobile told Thisday on the phone that the Share Purchase Agreement has been executed, as well as the Loan Purchase Agreement.
With the execution of the Loan Purchase Agreement, Teleology will take over the loans of the 13 banks from 9mobile in exchange for a payment plan.
This means that 9mobile will have no loans on its books and no longer owes the banks since Teleology has assumed the loans.
This also means that 9mobile will have a shareholder loan.
3. Banks Already Getting Their Money Back: According to Wood, Teleology under the Loan Purchase Agreement had commenced the repayment of the $1.2 billion loan owed to banks.
4. Wood Will Be In Charge: After the conclusion of the deal, Wood will assume the position of executive Vice Chairman/CEO of 9mobile.
5. 12 Foreigners, 8 Nigerians Behind Teleology: Teleology is a Gibraltar-registered firm made of 12 international and eight Nigerian shareholders.
In case you are wondering where Gibraltar is, according to Wikipedia, it is a British Overseas Territory and headland on Spain's south coast.
Of the 8 Nigerians, two are from Kano and one is from Katsina, one is from Kogi State, another is from Anambra State, two are from Delta State, and one is from Osun State.
6. Experienced Executives Will Run 9mobile: There are 12 executives coming in and they comprise five former executives at MTN. Others include executives from Orange, Vodafone, Celtel, etc.
7. Teleology Has Its Eyes On Mobile Money: Teleology has formed an alliance with Safaricom, the biggest mobile operator in East Africa.
According to Wood, “The advantage of our alliance with Safaricom is that this would enable us to tap into M-pesa for mobile money services.”
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