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Founder and chairman of Globacom, Dr. Mike Adenuga Jnr

Glo tops 9 others in race to buy 9mobile—-BH Investigations

10 telecom groups led by grandmasters of data, Globacom Nigeria Limited, and nine others including local and foreign entities are now confirmed in the race to buy over embattled 9mobile, formally Etisalat.

Others listed in the race include Bharti Airtel, Alheri Engineering Limited, Smile Telecoms Holdings, Helios Towers, Centricus Capital, Africell, Abraaj Capital, Teleology Holdings Limited, Ericsson, Africa Capital Alliance (ACA) and The Carlyle Group.

It would be recalled that on June 7, this year, Business Hilights had done an expose suggesting that Globacom could fit in to buy over 9mobile and effectively become the leading network by all consideration including subscriber base.

As at June and even before the intervention of the CBN and NCC, Business Hilights had reported that crack analysts and deep pocket pundits in the nation’s telecoms sector have started putting figures, trends and happenstances together on a tactical way forward that can better the lot of the industry in Nigeria.

One of their proposals is tilting towards a local investor who has the capacity to buy over the embattled credit-ridden Middle-East telecoms, Etisalat in other to end the lingering crisis and further enable Nigerian banks to get their money and clean up their books ahead of Central Bank of Nigeria’s (CBN) hot chase over financial statements very soon.

One of the industry analysts who pleaded anonymity said “I find it very difficult to see Etisalat solving this debt crisis alone and the parent company has come and gone, nothing happened.

“Now, look at it from this angle, the banks are madly in need of their money and they are not laughing at all. Yes, the presidency, Minister and NCC can come and say one thing or the other, the fact remains that the company owes some people who need their money urgently.

Corroborating this analyst, an insider in some of the deal who pleaded anonymity hinted to Business Hilights that “To me, it may not be out of place for Nigerians to hear one day that Globacom is putting down some money to buy up the company to drive capacity consolidation after all.  I think that will be a good buy. It will help sort out the banks who are need of their money and rest the matter once and for all.

“Like I said earlier, if that happens, it will not be the first telecom company to be sold and bought in Nigeria. Remember Visafone, it was sold. So if you ask me, I will tell you that if Globacom goes there, it will be a better deal for the entire industry.

Globacom has a natural advantage to raise enough fund to buy Etisalat; that is if it does not currently has the needed deep pocket to do that now. Moreover such acquisition will smartly shut up the company’s capacity, global rating and service delivery including coverage and tailored services. Recall that mergers and acquisitions are possible in any sector, it has happened in banks some years ago and nothing is bad about it in telecoms.

“On Dangote Group coming in, I think the group is still watching the telecoms industry even though it has some time ago bought a frequency and later sold to the same Etisalat, I think one need to find out if he is still looking at telecoms for now.

In his further submission, the expert said “I think Glo is good to go if it decides”.

The telecoms company formerly known as Etisalat Nigeria changed its brand name to 9Mobile in July after the Mubadala Group, the major investor from the United Arab Emirates, pulled out of Nigeria’s fourth largest mobile operator following a N541 billion debt.

The debt is owed to a consortium of 10 banks, with GTBank acting as the facility agent.

The sale of 9mobile, with 21 million subscribers, is expected to bring in the needed capital to restore it to good health to become competitive once more.

 

About Business Hilights

Business Hilights is an online news channel conceptualized and structured to report and track on a daily basis; latest developments in critical business sectors to serve as a one stop news gateway for governments, foreign and indigenous investors.
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