Teleology gets 90 days to pay $450m for 9mobile

Teleology Holdings Limited (THL), the preferred bidder for
9mobile Limited, has paid the $50 million unrefundable deposit for
its acquisition of the firm.

It has 90 days to pay the $450 million balance to seal the
deal.

9mobile will be handed over to Teleology after the payment of
the balance, Nigerian Communications Commission (NCC) Executive
Vice Chairman Prof. Garba Umar Danbatta said yesterday.

He spoke after the NCC and the Central Bank of Nigeria CBN
signed a Memorandum of Understanding (MoU) on Financial Inclusion
at the CBN Headquarters, Abuja.

Danbatta said if Teleology failed to make the complete payment
within 90 days, Smile Communications Limited (SCL), the reserved
bidder, might take its place.

Globacom, Airtel, Smile Communications, Helios, and Teleology
emerged as bidders for 9mobile out of 16 firms, which filed bids
with Barclays of Africa, 9mobile’s financial adviser.

They include MTN, ntel, Virgin Mobile from the United Kingdom
and Vodacom of South Africa, BUA Group, Morning Side Capital
Partners, Obot Etiebet & Co, Blackstone Private Equity, and
Hamilton and George International Limited.

Airtel pulled out; Glo failed to attach financial commitment to
its bid.

Danbatta said: “The MoU we have signed is on mobile money
service and financial inclusion; this followed useful work done by
a committee made up of representatives from NCC and CBN which
culminated in the signing of the MoU and on the basis of the MoU,
we have signed, the two organisations have indicated commitment
towards driving financial inclusion in the country as well as
ensuring inprovement in the money mobile service
communication.”

Danbatta, who led his management team to the CBN Headquarters,
said NCC was targeting 30 per cent broadband penetration by the end
of the year, adding that the commission has so far made 70 percent
progress on the target.

He told CBN Governnor Godwin Emefiele that the telecom industry
has been recording steady growth since 2001, noting that in the
past four years its contribution to the Gross Domestic Product
(GDP) stands at 10 per cent.

Danbatta said: “But the figures may not tell the entire story.
Investments in the sector in human and material resources have
continued on the rise. In 2001, the telecom sector could boast of
mere $50 million worth of investment, but as at September 2017, we
have investments worth $70 billion.

“The Value Added Services (VAS) segment of the telecom market in
Nigeria today is worth $200 million and is estimated to grow to
$500 million by 2021.

“In subscription numbers, the less than 500,000 lines in 2001,
have grown to more than 147 million recorded as at January 2018.
Teledensity, weighted in the ITU (International Telecommunication
Union) formula of one line to 100 of population, stands at 105.21
per cent, while internet penetration has hit the 100 million mark
as at January 2018.”

Welcoming the NCC team, the Emefiele described the signing of
the MoU as a landmark event that would boost financial inclusion
and transactions in the country.

Emefiele said: “ Our teams have worked for several months trying
to put things together with the intention of seeing to how NCC and
CBN can work together towards driving the payment system in
Nigeria, reducing cash transaction and enhancing cashless
operations in the country and it will also help to facilitate
financial inclusion and also drive a more robust payment system in
the country

“I am very delighted because today with this signing, we are now
very sure and certain that we will very easily improve the level of
financial inclusion from the level it is today which is about 48
per cent and we set a target for ourselves that by 2020 which is in
three years or below that the level of financial inclusion should
increase to 80 per cent.

“And I can assure everybody with this signing it provides
framework for licensing of payment service provider and is a
framework that will also guide the working of those who are
stakeholders both in the banking industry as well as the telecoms
industry not just mobile payment but the payment system in
Nigeria.

“I am delighted that we are witnessing this today and we look
forward to many more years of close collaboration. Between the CBN
and banking system on one hand and the NCC, telecoms industry on
another hand.”

Teleology Holdings Limited (THL), the preferred bidder for
9mobile Limited, has paid the $50 million unrefundable deposit for
its acquisition of the firm.

It has 90 days to pay the $450 million balance to seal the
deal.

9mobile will be handed over to Teleology after the payment of
the balance, Nigerian Communications Commission (NCC) Executive
Vice Chairman Prof. Garba Umar Danbatta said yesterday.

He spoke after the NCC and the Central Bank of Nigeria CBN
signed a Memorandum of Understanding (MoU) on Financial Inclusion
at the CBN Headquarters, Abuja.

Danbatta said if Teleology failed to make the complete payment
within 90 days, Smile Communications Limited (SCL), the reserved
bidder, might take its place.

Globacom, Airtel, Smile Communications, Helios, and Teleology
emerged as bidders for 9mobile out of 16 firms, which filed bids
with Barclays of Africa, 9mobile’s financial adviser.

They include MTN, ntel, Virgin Mobile from the United Kingdom
and Vodacom of South Africa, BUA Group, Morning Side Capital
Partners, Obot Etiebet & Co, Blackstone Private Equity, and
Hamilton and George International Limited.

Airtel pulled out; Glo failed to attach financial commitment to
its bid.

Danbatta said: “The MoU we have signed is on mobile money
service and financial inclusion; this followed useful work done by
a committee made up of representatives from NCC and CBN which
culminated in the signing of the MoU and on the basis of the MoU,
we have signed, the two organisations have indicated commitment
towards driving financial inclusion in the country as well as
ensuring inprovement in the money mobile service
communication.”

Danbatta, who led his management team to the CBN Headquarters,
said NCC was targeting 30 per cent broadband penetration by the end
of the year, adding that the commission has so far made 70 percent
progress on the target.

He told CBN Governnor Godwin Emefiele that the telecom industry
has been recording steady growth since 2001, noting that in the
past four years its contribution to the Gross Domestic Product
(GDP) stands at 10 per cent.

Danbatta said: “But the figures may not tell the entire story.
Investments in the sector in human and material resources have
continued on the rise. In 2001, the telecom sector could boast of
mere $50 million worth of investment, but as at September 2017, we
have investments worth $70 billion.

“The Value Added Services (VAS) segment of the telecom market in
Nigeria today is worth $200 million and is estimated to grow to
$500 million by 2021.

“In subscription numbers, the less than 500,000 lines in 2001,
have grown to more than 147 million recorded as at January 2018.
Teledensity, weighted in the ITU (International Telecommunication
Union) formula of one line to 100 of population, stands at 105.21
per cent, while internet penetration has hit the 100 million mark
as at January 2018.”

Welcoming the NCC team, the Emefiele described the signing of
the MoU as a landmark event that would boost financial inclusion
and transactions in the country.

Emefiele said: “ Our teams have worked for several months trying
to put things together with the intention of seeing to how NCC and
CBN can work together towards driving the payment system in
Nigeria, reducing cash transaction and enhancing cashless
operations in the country and it will also help to facilitate
financial inclusion and also drive a more robust payment system in
the country

“I am very delighted because today with this signing, we are now
very sure and certain that we will very easily improve the level of
financial inclusion from the level it is today which is about 48
per cent and we set a target for ourselves that by 2020 which is in
three years or below that the level of financial inclusion should
increase to 80 per cent.

“And I can assure everybody with this signing it provides
framework for licensing of payment service provider and is a
framework that will also guide the working of those who are
stakeholders both in the banking industry as well as the telecoms
industry not just mobile payment but the payment system in
Nigeria.

“I am delighted that we are witnessing this today and we look
forward to many more years of close collaboration. Between the CBN
and banking system on one hand and the NCC, telecoms industry on
another hand.”