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9mobile under threat as court nullifies sale of Etisalat

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Shareholders warn CBN, others over sale of 9mobile

Tides have taken a different turn in the sale of telecommunication firm, Etisalat International Nigeria Limited (9mobile) as a Federal High Court in Abuja has nullified its sales to Teleology Nigeria Limited.

The presiding Judge, Justice Bjnta Nyako maintained that all the steps leading to the exchange of ownership remained nullified and ordered parties to maintain status quo up till April 25, 2018.

The two major investors in Etisalat, Afdin Ventures Limited and Dirbia Nigeria Limited whose investments in Etisalat is estimated at $43,033,950 since 2009, had sued to retrieve their investments on the grounds that they were aggrieved, having been excluded from the decision making process of the company.

This led to a suit filed before the court on April 6, 2018 while the ruling was given on April 1, 2019.

The judge held: “Any action that has been taken concerning the rest of this litigation from the 25th day of April, which is earlier in time, should revert to the position, as of the res, to its 25th day of April 2018.”

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Defendants in the suit are: Karington Telecommunication Ltd, Premium Telecommunications Holdings NV, First Bank of Nigeria Plc, Central Bank of Nigeria, Etisalat International Nigeria Ltd and Nigeria Communication Commission (NCC).

The plaintiffs urged the Court to nullify the sale of Etisalat upon learning that the defendants had proceeded to concluded transfer of the company’s ownership despite the restraining orders made earlier by the court.

The plaintiffs explained that the defendants rebranded Etisalat Nigeria Limited to 9mobile after entering into negotiations with Smile.com and Glo Network to transfer its licence without recourse to the plaintiffs.

The plaintiffs explained, “When the plaintiffs became aware of the purported transaction, they filed this suit along with two applications namely: motion ex-parte and motion on notice, seeking for an order of injunction to restrain the defendants from going ahead with the transaction.

“When this suit came up for hearing on the 17th of April, 2018, this honourable court ordered parties to maintain status quo-pending the determination of the motion on notice.’’

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