No Congratulations Yet – Glo Has Not Acquired 9Mobile

No Congratulations Yet – Glo Has Not Acquired 9Mobile

There are rumors everywhere that Glo has bought 9Mobile. Awesomely, some emailed me congratulating me for making the call in June 2017 that Glo would buy then Etisalat Nigeria. To my knowledge, Glo has not bought 9Mobile until it is public [I have included Glo’s official statement on this, read below]. Also, with the High Court ruling this week, for Spectrum Wireless against EMTS, the expected January 16 2018 unveiling of the new 9Mobile owner may not mean much. Yes, Spectrum Wireless can kill any deal with the court ruling. I am not sure any investor would transfer funds if a High Court struck down the new Board appointment few days earlier. This is not ending any time soon.

The nullification followed dismissal of the Preliminary Objection filed by United Capital Trustees Ltd in response to the application by Spectrum Wireless, a shareholder of EMTS [9Mobile parent]. Spectum’s application was for a nullification of the ex parte order by Justice Ibrahim Buba of the Federal High Court.

Spectrum had claimed that the order was obtained by misrepresentation of facts that alienated its interests in the EMTS.

The June 2017 Prediction of Glo Acquisition of 9Mobile

In this videocast, I make a case why Globacom, the operator of the Glo brand in Nigeria, will acquire Etisalat Nigeria, in 2017. Etisalat Nigeria is in a very challenging position to pay back about $1.2 billion loan to a consortium of banks. In the current market dynamics, with deteriorating ARPU (average revenue per user), it will be extremely difficult for the telecom company to meet that obligation. Glo has liquidity, relatively, and is owned by a respected businessman (Mike Adenuga) who can raise any capital required to close a deal. Glo needs to close its subscriber gap with MTN which enjoys more than 20 million extra subscribers. You may ask – why not MTN, Airtel or AMCON? Answers here.

 

 

Statement from Glo

A press statement issued in Lagos on Friday said: “Globacom has not acquired 9Mobile as widely reported in the media. …We are bound by the terms of the acquisition process as stipulated by the authorities handling it and we will not in any way sway or deviate from the rules. We repose confidence in Barclays Africa, the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) which are handling the process that will lead to the emergence of a new owner for the company. Globacom urges all stakeholders and, indeed, the Nigerian public to disregard the report.”


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