Lagos, Nigeria – LH Telecommunication Limited has successfully acquired a majority stake in Emerging Markets Telecommunication Services Limited, the parent company of 9mobile. The acquisition, approved by the Nigerian Communications Commission and the Federal Competition and Consumer Protection Commission, paves the way for a new board to take control of the struggling telecom operator.
The financial terms of the deal were not disclosed. However, the company indicated that the takeover was contingent upon receiving regulatory approvals.
According to a statement released on Sunday, the investment, approved by the African Export-Import Bank in May 2023, resulted in a change of control in favor of the new investor. This change was facilitated by issuing new shares, amounting to 95.5% of 9mobile, to the new investor in exchange for fresh capital injected into the company.
“The new ownership structure is expected to bring stability and fresh investment to the company, enabling it to compete more effectively in Nigeria’s highly competitive telecom market,” the statement read.
The new board will be chaired by Thomas Etuh, with Nahim Ibraheem and Femi Edun joining as new members. Other board members include former Nigerian Senator Daisy Danjuma, Michael Ikpoki, Ibrahim Puri, Gloria Danjuma, and Emmanuel Etuh.
Obafemi Banigbe has been appointed as the Managing Director and Chief Executive Officer to lead the company through its transition phase and drive its recovery. Banigbe’s appointment, announced a few weeks ago, is expected to leverage his extensive C-suite experience and profound understanding of the African business landscape.
9mobile, formerly known as Etisalat Nigeria, was previously acquired by Teleology Holdings with the aim of revitalizing the company. However, it has continued to struggle in the Nigerian market. The operator has faced significant customer attrition, with subscribers decreasing from a peak of 22 million in October 2016 to just over 15 million in November 2018. As of the latest data released by the National Bureau of Statistics, 9mobile trails behind with 11.7 million voice subscribers and 3.3 million internet users.
