Teleology Holdings has pulled out of 9mobile. According to the founder of the company, Adrian Wood in a statement,
“Fifteen Teleology experts have worked since June 2017 on detailed 9mobile turnaround planning, development strategies and financial restructuring. This included lining up more than $500 million fresh direct foreign investment from international institutions.
9mobile is an exciting opportunity to build a revolutionary mobile network that could be the pride of Nigeria, unfortunately it appears that we will not be able to participate,” Wood said.
“We now must stand down from further work on the 9mobile project.”
Following this development, Adrian Wood has resigned from the boards of Teleology Nigeria Limited and Emerging Markets Telecommunication Services, trading as 9mobile.
Teleology Holdings owns 13% shares in Teleology Nigeria.
Late last year, Teleology was given the approval to take over 9mobile eight months after it made the initial $50 million non refundable deposit for its acquisition.
But it has not been a smooth experience since then. In December 2018, there was a pre-disconnection notice advertised by the Nigerian Communications Commission (NCC) granting IHS, the infrastructure services provider which hosts majority of 9mobile’s base stations, the permission to disconnect 9mobile and other debtor telecom operators within a 10-day ultimatum, apparently on account of 9mobile’s indebtedness
Sahara Reporters reported that the pullout was because “Teleology Holdings had become increasingly uncomfortable with actions taken outside of the agreed business plan, since takeover, most important of which is how it has been blocked from concluding a management services contract with the local joint venture, Teleology Nigeria Limited. The management services contract would have enabled Teleology Holdings and its team of experts oversee the implementation of the its elaborate business plans including funding proposals — but that so far been impossible.”
However Leadership Newspapers gave another explanation for this, stating that a source said that “Teleology Holdings has failed to pay $600million to the parent company Teleology. While Adrian Woods and his company are in such huge default, Woods have displaced almost all Nigerian experts in the company except the CFO. It was for this reason that the management felt time was up for him.”
Whatever the reason may be, it is certain that all is not well for 9mobile. The company which was boasting of about 15% of the market share in September 2017 declined to 9% in 2018 because of the issues besetting it.
