Teleology takes a step further in acquiring 9mobile with a $50 million non-refundable deposit

Teleology Holdings Ltd. led by Adrian Wood announced on Wednesday that it met the deadline for the payment of a $50 million non-refundable deposit for Nigeria’s fourth largest network operator, 9mobile in order to have full possession of its $500 million 9mobile bid. 

“Once the transfer was confirmed, we got a receipt from the trustees confirming payment,” Adrian Wood told Nigeria’s Thisday.

As part of the bid process, the transaction adviser, Barclays Africa had given Teleology 21 days from the date the letter was issued to pay the non-refundable deposit. If they had failed to make the payments, the reserved bidder, Smile Telecoms Holdings would have become the preferred bidder for 9mobile. However, with the $50 million non-refundable deposit, Teleology now has 90 days to pay the balance.

According to Thisday, Teleology paid the $50 million from Keystone Bank, with United Capital Trustees Ltd and United Bank for Africa (UBA) Plc as beneficiaries. The company has signed a memorandum of understanding with the Central Bank of Nigeria (CBN) and 9mobile to take full possession of the firm.

Teleology has also begun the repayment of the $1.2 billion loan owed to a syndicate of 13 Nigerian banks as confirmed by Andrian. “We have started paying in consideration for taking over the loan portfolio. About half of the loan would have been paid by the time we takeover 9mobile, and we will continue with payments into the future,”  he said.

Adrian revealed that Teleology is getting its financial support from AfreximBank and UBS, which is raising equity from both the Nigerian and international banks.

According to reports, Teleology has eight Nigerian shareholders from the six regions of the country and the incoming executive management team has a lot of experience working in the telecommunication sector. Some of them have worked with MTN, Orange, Vodafone, and Celtel. These shareholders will be unveiled once the transaction is closed.

The former CEO of MTN further said that it is forming an alliance with East Africa’s mobile operator, Safaricom in order to tap into M-pesa for mobile money services.

A lot of Nigerians are hopeful that 9mobile would benefit from Adrian’s experience and unusual love for Nigeria. Currently, Teleology chairman has been proclaimed to be one of the few expatriates that came to Nigeria and passionately loves the country and has always shown his passion for Nigeria’s telecommunications industry.