UK firm acquires majority stake in troubled Nigerian telco 9Mobile
TLDR
- LH Telecoms Limited acquires majority stake in Emerging Markets Telecommunication Services Limited, operator of 9Mobile in Nigeria
- Acquisition receives necessary approvals from Nigerian Communications Commission and Federal Competition and Consumer Protection Commission
- AFREXIM, 9Mobile's main lender as of May 2023, approves the investment leading to change in control.
LH Telecoms Limited, a UK-based telecoms company, has acquired a majority stake in Emerging Markets Telecommunication Services Limited, which operates as 9Mobile.
The acquisition of a controlling stake in the Nigerian telco received the necessary approvals from the Nigerian Communications Commission (NCC) and the Federal Competition and Consumer Protection Commission (FCCPC), as required by law.
The African Export-Import Bank (Afreximbank), which was 9Mobile's main lender as of May 2023, also approved the investment that led to the change in control. As part of the deal, the new investor, LH Telecoms Limited, received 95.5% of 9Mobile's shares in exchange for a significant capital injection.
Key Takeaways
The latest acquisition is expected to revitalize 9mobile, which has struggled to retain subscribers over the years. With the injection of fresh funds by the new investors, 9mobile, currently the fourth operator in Nigeria's mobile network space, can now compete more effectively with MTN, Airtel, and Globacom, which dominate the market. 9mobile, which once had over 20 million active subscriptions, had only 11.6 million connected lines as of March 2024, having suffered a consistent loss of customers over the years. As of March, the company accounted for only 5.3% of the market share, while MTN, Airtel, and Globacom controlled 37%, 29%, and 28% of the market, respectively. This acquisition aims to restore 9mobile's competitive edge in the telecom space.
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