LH Telecommunication Limited, a UK-based company, has taken a significant step into the Nigerian telecommunications market by acquiring a 95.5% stake in Emerging Markets Telecommunication Services Limited, the parent company of the struggling Nigerian telecoms provider, 9mobile. This acquisition marks a new chapter for 9mobile, which has faced considerable challenges in recent years.
The acquisition was approved by both the Nigerian Communications Commission (NCC) and the Federal Competition and Consumer Protection Commission (FCCPC), ensuring regulatory compliance. According to a statement from LH Telecommunication Limited, this strategic move will enable the injection of fresh capital into 9mobile, facilitating its recovery and competitive positioning in Nigeria’s dynamic telecom market.
“The investment, approved by the African Export-Import Bank, the senior lender to 9mobile in May 2023, has resulted in a change in control of 9mobile in favor of the new investor by the issuance of new shares amounting to 95.5% of 9mobile,” the statement said.
As part of the takeover, LH Telecommunication Limited has reconstituted the board of directors to steer the company towards stability and growth. The new board will be chaired by Thomas Etuh, an accomplished entrepreneur with over 36 years of experience across various strategic sectors, including agriculture, telecommunications, and banking. Other notable appointments to the board include Nahim Ibraheem and Femi Edun, who bring extensive expertise in finance, oil trade, procurement, and financial services.
The new board members are:
– Thomas Etuh – Chairman of the Board
– Nahim Ibraheem – Director
– Femi Edun – Director
– Senator Daisy Danjuma
– Michael Ikpoki
– Ibrahim Puri
– Gloria Danjuma
– Emmanuel Etuh
In addition to restructuring the board, the new owners have also appointed a new executive management team. Obafemi Banigbe, with over 24 years in the telecommunications industry, will serve as the Managing Director and Chief Executive Officer. Banigbe’s previous roles include positions at Airtel Nigeria and Millicom International Cellular in Tanzania and Ghana.
John Vasikiran has been appointed as the Chief Operating Officer, and Abolaji Idowu will take on the role of Chief Financial Officer. The new management team is tasked with navigating 9mobile through this transition period and setting the company on a path to recovery and growth.
This acquisition follows a tumultuous period for 9mobile, previously known as Etisalat Nigeria, which was acquired by Teleology Holdings in November 2018. Despite efforts to revive the company, it struggled with ownership disputes, leadership changes, and financial difficulties, leading to a decline in its market share. By March 2020, 9mobile had the lowest market share among Nigerian telcos, with subscriber numbers falling from over 15 million in 2018 to 11.7 million voice subscribers and 3.3 million internet users.
The new leadership under LH Telecommunication Limited brings hope for a revitalized 9mobile, capable of competing effectively in Nigeria’s competitive telecom market.