Teleology Gets 20-Day Extension To Close 9mobile Acquisition Deal
The process for the complete acquisition of 9Mobile is still ongoing.
As you already know, the company that emerged the preferred bidder for the takeover of the company is Teleology Holdings Limited.
In March, it made a commitment payment of $50 million.
But it has until June 30 to make full payment.
Now, indications have emerged that it may have put the final seal on its move to take over as the new owner of the company.
According to a competent source close to Barclays Africa who is in the know of the process for the acquisition of the telco, Teleology reportedly communicated its commitment to the payment of the final bid price to the Central Bank of Nigeria, CBN days ahead of the expiration of the 90-day payment timeline, which lapses on Saturday, June 30.
The source said the preferred bidder had however requested 20 working days’ extension from the CBN “to enable it perfect the process for the final payout in consonance with the provision of the acquisition agreement.”
A CBN source told News Agency Nigeria that the firm is in order in triggering the 20-day extension as it is contained in the agreement.
The source added that the regulator had granted the request by Teleology for the extension but with a proviso that it must pay additional non-refundable $50 million to further strengthen its stake in the acquisition bid for 9mobile.
An NCC source also confirmed that Teleology is indeed raising a financial war-chest that is beyond the cost needed for the settlement of the acquisition.
“What Teleology has raised offshore exceeds the initial acquisition cost. It is inclusive of the amount needed for an audacious network expansion project for 9mobile. I can confirm this will change the telecoms landscape significantly.
“The money coming will include the cost of over 5,000 additional base stations and a bullish acquisition of other fringe players in the telecoms sector to add to the 9mobile brand household.”
Hope you found this story useful. Spread the love by sharing with your friends