The last is not heard yet about the ownership struggle and protracted debt management crisis of the fourth digital mobile phone operator, 9Mobile which was acquired recently by Teleology Nigeria Limited.
While company’s new directors are jostling for the control of the company, its debtors, among them Afriexim and Nokia, system supplier, are putting pressure on it and may pull the rug off the feet of the mobile company on account of delays in settlement of debts owed them.
Serious financial transactions is said to be at the lowest ebb over 2019 election outcome.
There are also claims of under hand deals by some directors who are alleged to be taking kickbacks from some debtors who want their debts paid ahead of others.
Recently, the Atiku campaign organization alleged that persons close to President Mohammadu Buhari have stakes in the company, though the presidency have denied such claims. What is however clear and indisputable is that some powerful northerners, from Kano, linked to Isa Funtua have controlling interests in the company. These persons in partnership with Mohammed Edewor, former husband of Lola Abiola are said to be playing power game at the struggling company.
Sources alleged that the initial $50 million down payment for the award of the license to Teleology came from Funtua, while the remaining $251 million was sourced from Afriexim.
Apart from Mr Edewor, other members of the board include Alhaji Nasiru Ado Bayero, who is chairman; Asega Aliga, Ugandan, Winston Ndubueze Udeh all non-executive directors. Others are Mallam Abdulrahman Ado, a former Executive Commissioner in charge of licensing and consumer affairs at the NCC who is an Executive Director and Stephane Beuvelet who was named Acting Managing Director of the mobile company.
The recent resignation of Adrian Wood, Chief executive Officer of Teleology Holding and one time managing director of MTN, from the board is linked with the ownership struggle that has not left the company.
Teleology Nigeria is the company that paid $301 million for 9mobile, through a consortium of local and foreign investors.
The board of directors of 9mobile in a recent statement said Wood left the board because he was not able to meet his share subscription obligation and that he was always absent at board meetings
The 9Mobile statement had said “These payments, as well as further due diligence and technical evaluations, led to the clearance of the sale by the NCC, and handover of 9mobile to the new owners, who announced a Board on 12 November 2018 with His Royal Highness,”.
“While every partner in the consortium was delivering and meeting their obligations to the partnership in terms of financial resources, physical availability for crucial meetings and extensive network to help build the business, Wood’s Teleology Holdings Limited, which only owned a minority stake in Teleology Nigeria Limited, failed severally and wholly to meet theirs”, the statement further stated.
“Mr Wood was not personally present for all the critical presentations made by the consortium during the bid process and failed abjectly with his financing arrangements with Swiss-based UBS Bank. In all these failings, other partners in the consortium filled the gap and pushed ahead until the sale was completed”, the statement added.
But information available to eWorldNews have suggested that Wood was actually schemed out after he had prepared all the technical and financial papers that qualified Teleology Nigeria to clinch the bid. The Nigerian shareholders have also moved against Wood claiming he was planning to take away form Nigeria earnings that would accrue to 9Mobile if he was allowed to stay in 9Mobile.
Information also indicated that Nigerian partners were angry with Wood because he failed to bring foreign monies and interests he promised them. But persons close to Wood have noted that Wood was only being careful about involving foreigners in a business he was sure yet of its future.
Information available to our reporter suggested that Wood is feeling betrayed by the Nigerian shareholders, especially, Mr Edewor whom Wood engaged at the initial stages on legal retainer ship basis to help him prepare the legal papers for the registration of Technology Holdings, but instead he went ahead to register Teleology Nigeria. Edewor is said to have now played himself into becoming a director of the 9Mobile.
Wood’s case is akin to the experience of Econet, which has now transformed into Airtel. Mr Strive Masiyiwa, a Zimbabwean, was the brain behind Econet clinching the Digital Mobile License in 2001. He was thrown out by Nigerian shareholders on account that he could not meet up with his financial obligation as contained in the share purchase agreement. He went to court to seek redress. There were reports yesterday that Wood, in the same manner, has gone to court to seek redress.
Secondly, Nokia and Afriexim have continued to pile pressure on 9Mobile with several visits, some of them came two weeks ago, demanding that their debts be settled. Part of their fears is the Nigerian political uncertainty. They are of the view that should President fail to clinch the presidency their interests would be jeopardized.
Nokia is not happy that Huawei was recently paid $33 million ahead of it and Afriexim is threatening to take steps that could joepardise the wellbeing of the mobile phone company.
