Emerging Markets Telecommunication Services Limited, trading as 9Mobile, has been acquired by LH Telecommunication Limited.
Regulatory Approval and Investment:
According to a statement released on Sunday, the acquisition of a majority stake in the Nigerian telecom company received approval from both the Nigerian Communications Commission (NCC) and the Federal Competition and Consumer Protection Commission (FCCPC).
Capital Injection and Share Issuance:
The investment, endorsed by African Export-Import Bank (AFREXIM), 9Mobile’s senior lender, in May 2023, has led to a change in control.
New shares representing 95.5% of 9Mobile were issued to LH Telecommunication in exchange for fresh capital.
New Leadership:
Following the capital injection, LH Telecommunication has appointed a new board.
Thomas Etuh, an entrepreneur with over 36 years of experience in key sectors of the African economy, has been named Chairman of 9Mobile’s board. Other board members include Nahim Abe Ibraheem and Femi Edun.
Implications for 9Mobile:
This acquisition is anticipated to revitalize 9Mobile’s position in the telecom market. The new capital infusion aims to enhance 9Mobile’s competitive edge against MTN, Airtel, and Globacom, which dominate the Nigerian market.
9Mobile, once holding over 20 million active subscriptions, had 11.6 million connected lines as of March 2024, representing a 5.3% market share.
Historical Context:
The acquisition marks the second change in ownership for 9Mobile, originally launched as Etisalat. The company was previously acquired by Teleology Nigeria Limited in 2018 following a loan default.
The acquisition, facilitated by Barclays Africa and involving the Central Bank of Nigeria and major banks, included an initial $50 million deposit and an additional $251 million to settle debts, leading to a rebranding from Etisalat to 9Mobile.
Current Status:
Details about LH Telecommunication Limited, believed to be a Nigerian company, remain limited at this time. Further information on the new owners is awaited as the transition progresses.