There has been an ongoing bidding war by five interested firms for 9mobile formerly Etisalat Nigeria.
These firms include Globacom, Bharti Airtel, Smile Telecoms, Teleology Holdings Limited and Helios Investment Partners.
Reasons for the sale of 9Mobile (formerly Etisalat Nigeria).
9Mobile (formerly Etisalat Nigeria) took out a loan facility to the tune of $1.2 billion loans from a consortium of banks led by Guaranty Trust Bank (GTBank) and Access Bank Nigeria Plc. It, however, defaulted on loan repayments due to operational reasons and crisis in the Nigerian foreign exchange market in 2015 and 2016.
This led the parent company, Etisalat International, to pull out of the Nigerian business to protect its image and avoid any liabilities. The consortium of banks went further making moves to move the company into a receivership. The Central Bank of Nigeria (CBN) and the NCC however, thwarted this move by the aggrieved banks appointing an interim board for the company to lead its transformation and management pending a resolution.