Business Hilights
Tracking Nigeria's Headline Business News Online

How Barclays suddenly become advisor in sale of 9Mobile

Facts on why rather than Citigroup and Standard Banks, new advisor had been preferred for arranging the sale of 9Moblie on or before December, 31st 2017.

Though analysts say the sudden change had the backing of the 13 banks who provided the $2.1bn syndicated loan that was defaulted leading to the beginning of the crisis, previous links with 9mobile failed to support their involvement.

More intelligence suggests that Standard’s local unit, Stanbic IBTC Bank, is among the group of lenders to 9mobile while Citi had advised the telecom company before now.

Already, Barclays had started work on the mandate and was in the process of setting up a database for prospective investors and conduct due diligence.

Though confirmation of the this development is yet to be secured from Barclays,  was not immediately available for comment, Business Hilights recalls that 9mobile, formerly known as Etisalat Nigeria, had secured a loan of $1.2bn in 2013 from a consortium of Nigerian banks to finance a major network rehabilitation project and expansion of its operational base in Nigeria.

The consortium is made up of Access Bank Plc, Zenith Bank, GTBank, First Bank, UBA, Fidelity Bank, Ecobank, FCMB, Stanbic IBTC Bank and Union Bank, among others.

Initial drive by the banks to take over the company compelled the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC) to step in and brokered the current management arrangement which it mandated to prepare for sale within 180 day that is expected to end on or before December 31. 2017.