By Emmanuel Ogbodo
Emerging Markets Telecommunication Services Limited, known as 9Mobile, has been acquired by LH Telecommunication Limited. This acquisition of a majority stake in the Nigerian telecom company has been approved by both the Nigerian Communications Commission (NCC) and the Federal Competition and Consumer Protection Commission (FCCPC), as legally required.
The deal, sanctioned by the African Export Import Bank (AFREXIM), the primary lender to 9Mobile in May 2023, results in a control shift to the new investor. This was achieved by issuing new shares amounting to 95.5% of 9Mobile in exchange for fresh capital.
With the capital injection, the new investor has appointed a new board. Thomas Etuh, an accomplished entrepreneur with over 36 years of experience in African strategic sectors, has been named Chairman. Other board members include Nahim Abe Ibraheem and Femi Edun. Additionally, LH Telecommunication Limited has nominated Senator Daisy Ehanire Danjuma, Michael Ikpoki, Ibrahim Puri, Gloria Danjuma, and Emmanuel Etuh to the board.
The board has confirmed a new management team led by Obafemi Banigbe as Managing Director and CEO to guide 9Mobile through its transition and recovery. Recently, Banigbe was announced as CEO.
This acquisition aims to revitalise 9Mobile, which has faced challenges in retaining subscribers. With new funding, 9Mobile can now compete more effectively against major players like MTN, Airtel, and Globacom, who dominate the Nigerian mobile network market.
Once boasting over 20 million active subscriptions, 9Mobile had 11.6 million connected lines as of March 2024, with a market share of only 5.3%. In contrast, MTN, Airtel, and Globacom held 37%, 29%, and 28% respectively.
This marks the second acquisition of the company, originally launched as Etisalat. In 2018, after defaulting on loans, 9Mobile was acquired by Teleology Nigeria Limited following a bidding process managed by Barclays Africa, in conjunction with the Central Bank of Nigeria (CBN), NCC, and 13 Nigerian banks, including GT Bank, Zenith Bank, and Access Bank.
The acquisition concluded with an initial $50 million deposit and a further $251 million settlement to the banks. This, along with due diligence and evaluations, led to the NCC’s approval of the sale and the handover of 9Mobile to the new owners, who rebranded it from Etisalat to 9Mobile and announced a new board on November 12, 2018, with His Royal Highness Prince Nasiru Ado Bayero as Chairman.
Since then, 9Mobile has undergone multiple changes in its board and management.
As of this report, detailed information about LH Telecoms, the new owners believed to be a Nigerian company, remains limited.
