Court hits pause on 9mobile sale - Mobile World Live

Court hits pause on 9mobile sale

19 APR 2018

A sale of troubled operator 9mobile, set to be acquired by Teleology Holdings, hit a snag when a federal court in Nigeria said the transaction must be put on hold until an issue with shareholders is sorted out.

The Federal High Court in Abuja granted an interim restraining order, local media reports stated, after two shareholders filed an application last month demanding they be paid back $43.3 million they claim they invested in 9mobile.

Plaintiffs Afdin Ventures and Dirbia Nigeria claim they are major investors in 9mobile but were left out of the sale process. They want the sale to be delcared unlawful and also voiced concerns around how former 9mobile parent Etisalat mismanaged funds.

Justice Binta Nyako ruled “an order is made for the maintenance of status quo as at Tuesday” (17 April) adding: “the defendants ought to be heard”. The case was adjourned until 14 May.

The ruling is the second time in as many weeks the deal faced jeopardy. Earlier, the Nigerian Communications Commission said Teleology’s payment of $500 million, for which it was given a 90-day deadline, is not enough for the sale to go through. It must also prove it has the right technical capacity to run 9mobile.

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Saleha Riaz

Saleha joined Mobile World Live in October 2014 as a reporter and works across all e-newsletters - creating content, writing blogs and reports as well as conducting feature interviews...More

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