A Nigerian Federal High Court has halted the ongoing transaction for the acquisition of distressed telecommunication company 9Mobile due to a tendered legal action by aggrieved shareholders of the company.
These unnamed shareholders have demanded that the sales be put to a halt till they recover the sum of $43.33 million that they invested in the company
While adjourning the case to May 14th, Justice Binta Nyako ordered all the parties involved in the sale and acquisition to maintain status quo, pending hearing and determination of the suit.
Leading the aggrieved shareholders are Afdin Ventures Limited and Dirbia Nigeria Limited, who are said to be major investors in the telecommunications company. The duo expressed their displeasure in a court in the country’s capital, saying they were left out in the decision making process, and for that sole reason they demanded a refund of their investment estimated to be worth about $43,330,950 at 10 percent per share.
According to these shareholders, their anger stemmed from the mismanagement of 9mobile—previously Etisalat—and the move by the company to conduct a sale at the detriment of its shareholders.
Meanwhile, Teleology Holdings Ltd., the highest bidder for the company, has met the deadline for the payment of a $50 million non-refundable deposit to have full possession of its $500 million 9mobile bid.
Teleology is expected to complete the remaining sum of $450 million for total acquisition as well as meet the requirement of various regulators in the country.