Takeover of Nigeria's 9mobile to take longer than expected.

The sale of Nigeria’s 9mobile to investment firm Teleology Holdings, which was agreed six months ago, will take longer to complete than initially expected, the country’s fourth largest telecoms firm said on Thursday.

9mobile, formerly called Etisalat Nigeria, said its board expects the takeover to be completed “as soon as possible” and that an extension was necessary for a smooth transition, without giving details or providing a new timeline for completion.

A regulatory source told Reuters that 9mobile has been in meetings with its lenders, regulators and the new investor for the last few days.

In February, Teleology was picked as preferred bidder for 9mobile, following a bid process arranged by Barclays Africa, after a debt default forced its lenders to step in.

The prospective buyer was given 90-days to pay the balance of $450 million to complete the acquisition following payment of a non-refundable deposit of $50 million in March.

The Nigerian Communications Commission (NCC) has to approve a transfer of 9mobile’s telecoms license to Teleology.

Another source said Teleology, which was set up by 12 telecoms industry veterans led by ex-MTN Nigeria executive Adrian Wood, is waiting for 9mobile’s lenders to obtain clearance from the NCC and Securities and Exchange Commission.

“The board of 9mobile is pleased with the progress made thus far,” said its chief executive Boye Olusanya.

Former Etisalat Nigeria’s lenders took over the telecoms company last year after it failed to keep up with debt repayments. Under the stewardship of its lenders, it has changed its board, management and name and is now up for sale.

Teleology has partnered with East Africa’s largest telecoms operator Safaricom (SCOM.NR) to transform 9mobile. However the takeover is coming at a time of increased competition as Nigeria’s biggest operator, South Africa’s MTN (MTNJ.J), expands its service through partnerships with banks.

9mobile has lost subscribers. In October, it had 17.1 million users, a 12.2 percent market share, which was down from 20 million subscribers, or a 14 percent share earlier in 2017, NCC data showed.

Courtesy: Reuters