Court nullifies sale of 9mobile – Shareholders demand refund

Federal High Court in Abuja has stopped the planned sale of the distressed telecommunication firm, 9Mobile, following a legal action taken by angry and aggrieved shareholders of the company.

The court ordered all the parties to maintain status quo, pending hearing and determination of the suit.

This is what happened, Afdin Ventures Limited and Dirbia Nigeria Limited – who claimed to be major investors in Etisalat, told the court that they were left out in the firm’s decision making process, even as they demanded for a refund of their invested funds estimated at $43,330,950.

9mobile

The defendants involve were Karlington Telecommunications Ltd, Premium Telecommunications Holdings NV, First Bank of Nigeria Plc, Central Bank of Nigeria, Etisalat International Nigeria Ltd and Nigerian Communication Commission (NCC).

Afdin Ventures Limited and Dirbia Nigeria Limited said that the planned sale of Etisalat (now 9mobile) to Smile.Com and Glo Network, without paying them the money with which they bought their shares, is unlawful. And therefore urge the court to award N1billion in general damages against the defendants and in their favour.

According to him, “In 2015, the 1st, 2nd and 5th defendants took several loans from 13 Nigerian banks with a view to expanding and boosting their telecommunication business, but that the money was not properly utilised, leading to heavy indebtedness on the 1st, 2nd and 5th defendants.”

He added that, owing to the resultant heavy indebtedness, the 1st and 2nd defendants “rebranded the 5th defendant (Etisalat) and changed its name to 9Mobile with a view to selling it off and obtaining money to pay its numerous debts.

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15 thoughts on “Court nullifies sale of 9mobile – Shareholders demand refund”

  1. Nigeria my country.. Always controversy in things like this. Please let them resolve this before 9mobile becomes a thing of the past

  2. 9mobile is definitely in for more trouble than we thought. I just hope none of all these drama will affect we the subscribers

  3. As strange as this looks, they are right. Shareholders have to be involved in whatever is happening with the company because they are part owners. Except if they can strike a deal with the new buyer that their shares will still be intact, otherwise they hav to be paid.

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