9mobile refutes N55bn debt claims to Keystone Bank
By Esther Agbo
The Board of Directors of Emerging Markets Telecommunication Services Limited, operating as 9mobile, has denied reports that a court ordered it to pay a N55bn debt to Keystone Bank.
In a statement released on Saturday, 9mobile clarified that it is not involved in any legal proceedings or court orders concerning the debt. The dispute pertains solely to its minority shareholder, Teleology Nigeria Limited.
Teleology Holdings acquired 9mobile, formerly known as Etisalat Nigeria, in November 2018 after a lengthy bidding process. However, just two months later, Teleology withdrew from the project due to dissatisfaction with its local partnership and operational challenges. This decision put the initial $50m deposit for the acquisition at risk and highlighted ongoing financial difficulties for 9mobile, which has faced a significant decline in subscribers since 2017.
The statement read, “Our attention has been drawn to a wave of syndicated media publications dated Friday, July 19, 2024, with the same misleading headline: ‘Court orders 9mobile to pay N55bn debt to Keystone Bank,’”
“The Management of 9mobile wishes to inform the concerned public and critical stakeholders that, contrary to this misleading headline, Emerging Markets Telecommunication Services Limited, trading as 9mobile, was neither a party to any suit nor affected by the order said to have been made against it as an entity.”
On Friday, it was reported that a Federal High Court in Ikoyi, Lagos, ordered Teleology Nigeria Ltd. to repay the debt owed to Keystone Bank. According to Keystone’s counsel, Bode Olanipekun, SAN, Teleology failed to service the loan used to finance its acquisition of 9mobile’s assets.
Despite Keystone Bank’s offer to restructure the loan, Teleology did not meet the stipulated conditions. Instead of repayment, the plaintiff received a proposal from PAC Ltd. for debt conversion to equity, which involved no immediate repayment.
9mobile however stressed that the reports were false and defamatory, damaging its corporate reputation.
The company stated, “If the correspondents who filed the obviously syndicated news stories were anywhere near the courtroom during the proceedings leading to the issuance of the said order, they would have known that at no point was 9mobile a party to the suit in question. Rather, the action was appropriately classified and filed as ‘Keystone Bank v. Teleology Nigeria Limited.
The company reiterated that no judgment was made against it and described the attempt to link 9mobile with the transaction of its minority shareholder, Teleology Nigeria Limited, as “false and maliciously misleading.”
The company emphasised that it is under new ownership, holding a 95.5 per cent controlling stake, and is not liable for the actions of its minority shareholder in the ongoing legal issues.
“Our business transformation program has commenced, and we are poised to reclaim our place in the market.”
