Teleology to raise $300 million loan for 9mobile acquisition
Having out bid Smile Telecom’s $200,000,000 bid for the acquisition of 9mobile with a bid of $500,000,000,Teleology Holdings has hired a global financial service firm to raise a $300 million bridge loan to seal the acquisition deal.
According to a report by The Guardian, Teleology had sought out the service of USB, to raise bridge loan from local banks and investors. And the balance of $200 million will be raised through equity. This is in contrary to a recent report that Teleology actually offered $301 million to beat Smile Communications’ $300 million bid.
The acquisition process was recently put on hold by an order of the Federal High Court, Abuja. Two companies that claimed to be major stakeholders of 9mobile had earlier headed to the court to asked for a refund of $43,330,950, which was the amount they invested in the company.
The fate of the entire acquisition process is no longer on the court case alone, Teleology Holdings has to raise the total $500 million for a successful acquisition.
Teleology Holdings made a $50m non-refundable cash deposit requirement last month and now have 90 days to make up the $450,000,000 for the acquisition. If for some reason the deal doesn’t pull through then Smile Telecommunication get the offer to acquire 9mobile as the preserved bidder.
Therein lies the fate of 9mobile formerly known as Etisalat Nigeria who were taken over by creditors in July 2017 after its parent UAE-based company exited following a $1.72 billion debt default.