Telecommunications:Beyond New Equity Investment in 9Mobile
Will the latest acquisition of 9mobile by new investors offer the struggling telecoms firm the needed finances to compete favourably and cover the lost grounds in the nation’s telecoms sector, Emma Okonji asks
Emerging Markets Telecommunication Services Limited (EMTS), operating under the trade name 9mobile, two week agos, announced the successful completion of an equity investment by LH Telecommunication Limited, which saw the new investor acquiring 95.5 per cent shares in 9mobile, to take over the telecoms company.
The new owners had since reconstituted the board of 9mobile, with plans to inject fresh funds into the telecoms company.
The Nigerian Communications Commission (NCC) and the Federal Competition and Consumer Protection Commission approved the acquisition, as required by law.
Transition
9mobile has passed through some transitional stages, which include a name change since it first rolled out its telecoms services in Nigeria in 2008.
Being the fourth entrant into the Nigerian telecoms space, the company, which started with the brand name Etisalat in 2008, had to change its brand name in 2017, following the pullout of Mubadala Development Company of United Arab Emirates, which was Etisalat’s largest shareholder as at then.
At that time, Mubadala, an Abu Dhabi Government-owned investment and development company, controlled about 70 per cent of the shares in Etisalat along with Etisalat UAE mobile, with Emerging Markets Telecommunications Services (EMTS), promoted by a Nigerian, Hakeem Bello-Osagie, owning the remaining 30 per cent.
The exit of Mubadala in 2017, gave rise to a new investor that changed the brand’s name from Etisalat to 9mobile in 2017. The new investor that took over Etisalat in 2017, however, could not provide the much-needed funds for 9mobile, a development that gave rise to another acquisition of 9mobile by a new set of investors, believed to have the financial capacity to turn around 9mobile for stronger market competition.
Subscribers’ Reaction
Pleased with the announcement of the new ownership of 9mobile, coupled with the plans by the new investors to inject fresh funds into 9mobile, telecoms subscribers across networks have expressed their excitement about the development, saying that the decision to allow new investors to take over the telecoms company, is in the best interest of 9mobile subscribers and the Nigerian economy.
President of the National Association of Telecoms Subscribers (NATCOMS), Chief Deolu Ogunbanjo, who spoke to THISDAY about the new development of 9mobile, expressed happiness about the acquisition.
According to him, the acquisition will deepen competition, and ensure better service quality for 9mobile subscribers.
“Since Mubadala, the parent company of Etisalat, which later transformed into 9mobile, pulled out of 9mobile in 2017, the telecoms company has been struggling with finances to roll out services and to compete in the market, a development that caused it to lose a substantial chunk of its subscribers to other networks. In the last few years, 9mobile lost about 50 per cent of its subscribers and has struggled to maintain the remaining subscribers.
Telecoms subscribers are optimistic about the calibre of the new investors to reposition 9mobile on the path of growth, which include former CEO of MTN, Nigeria, Mike Ikpoki.
“Our advice is that the new investors should release the needed funds that will make 9mobile roll out customer-centric solutions that will attract customers back to its network. We also advise that 9mobile should begin to consider the rollout of value-added services that are different from what is obtainable in the telecoms market today,” Ogunbanjo said.
The acquisition of 9mobile, he further said, remained a welcome development for the Nigerian telecoms industry, because it will boost competition among telecoms operators and compel them to offer the best of telecoms services to Nigerians.
Although 9mobile has passed through a lot of challenges in the past, we are confident that the new investors will be able to inject fresh funds that will make 9mobile bounce back again much stronger into the Nigerian telecoms space, Ogunbanjo further said.
Economic Implications
Speaking on the economic implications of the acquisition of 9mobile, telecoms industry analyst and subscriber to 9mobile network, Mr. Philip Azuka, told THISDAY that the new acquisition of 9mobile would further empower 9mobile subscribers, attract new subscribers and further boost telecoms contribution to Nigeria’s Gross Domestic Product (GDP).
According to him, if adequate funds are injected into 9mobile, it will help the telecoms company to roll out services that will enable existing subscribers to do more and also attract new subscribers to the network.
“In the area of GDP growth, telecoms industry has been contributing immensely to Nigeria’s GDP. According to the latest statistics released by the NCC in the last three years, telecoms contribution to GDP has continued to increase. The statistics showed that in Q1, 2021, telecoms contribution to GDP was 11.66 per cent, and in Q2, 2021, it increased to 14.42 per cent, but dropped to 11.94 per cent in Q3, 2021, before it increased again to 12.61 per cent in Q4, 2021. So if new funds are injected into 9mobile by its new owners, it will enhance the financial capacity of the 9mobile to explore new areas of telecoms service delivery, and that will further increase telecoms contribution to GDP,” Azuka said.
The New Board Composition
Following the recent acquisition of 9mobile, a new board that will manage the affairs of the telecoms company has been reconstituted. The new board members, who are Nigerians, are also part of the new investors of 9mobile.
Under the injection of capital, the new investors for 9mobile have nominated a new board of directors for the telecoms company, with Thomas Etuh as the Chairman of the Board.
Other members are Nahim Abe Ibraheem, Femi Edun, Senator Daisy Ehanire Danjuma, Michael Ikpoki, Ibrahim Puri, Gloria Danjuma, and Emmanuel Etuh.
In a statement released by 9mobile and signed by the new board of directors, the new owners said they also ratified the appointment of the new management team led by Obafemi Banigbe as the managing director and chief executive officer of the company to lead the company through this transition stage and take it on the path of recovery.
According to the statement, Thomas Etuh is the Chairman of the Board. He is an accomplished and versatile entrepreneur with over 36 years of experience in strategic sectors of the African economy, including agriculture, fertiliser production, mining, banking, telecommunications, power and aviation.
Nahim Abe Ibraheem has over 30 years of experience across finance, upstream and downstream oil trade, procurement, and manufacturing
Femi Edun is a financial services industry professional with over 35 years of experience across assurance, consulting, credit ratings and research, investment banking and proprietary investment, from a variety of roles in Akintola Williams & Co (now Deloitte), Price Waterhouse, (now PricewaterhouseCoopers), Agusto & Co. Limited, Nigeria’s first credit rating agency and Frontier Capital Limited.
Senator Daisy Ehanire was elected as a Senator of the Federal Republic of Nigeria in 2003 where she served on numerous committees, most notably as Chairman of the ECOWAS Parliament’s Women and Children’s Rights Committee and Chairman Senate Committee on Women Affairs and Youth Development.
Michael Ikpoki is an accomplished Multinational Business Executive/Leader with over 25 years of experience across regulatory, commercial, operational management/leadership and consulting/advisory roles in the African Telecom Industry. He was a former Chief Executive Officer of MTN Ghana and MTN Nigeria.
Ibrahim Ajimasu Puri is a finance professional who possesses over 30 years of cognate banking experience encompassing operations, marketing, retail, corporate banking, and human resource management. He was an Executive Director with the United Bank for Africa (UBA), with responsibility for the bank’s operations in Northern Nigeria.
Gloria Danjuma, a dynamic and result-oriented professional with a proven track record of leadership and strategic vision across multiple industries. She has over 20 years of experience driving growth, maximizing shareholder value, and leading organisations through periods of transformation.
Emmanuel Etuh is a professional and business executive whose experience covers law, finance and operations across diverse industries. He currently serves as Executive Director, Corporate Services at Lighthouse Capital, overseeing the operational aspects of the business, including investments, client service, risk and technology.
Similarly, the Board has approved the appointment of John Vasikiran as the company’s Chief Operating Officer and Abolaji Idowu as Chief Financial Officer.
“The reconstitution of the board of directors and the executive leadership of the company has brought the 9mobile transformation programme to a momentous phase in readiness to compete strongly in the market,” the statement further said.
