Federal high court nullifies telecom's board

Just four days to the January 16 9Mobile sale deadline, Spectrum Wireless Communication a minor shareholder in the embattled telco, on Friday secured a Federal High Court order nullifying the legitimacy of the transition board overseeing the sale of the company.

The board, instituted by United Capital had not acknowledged Spectrum Wireless since taking over 9Mobile and the minor shareholder fears being sidelined in the sale negotiations after investing $35 million in Etisalat in 2009.

The solicitors to Spectrum Wireless, J. A. Achimugu and Co. and Dr. Reuben Atabo and Co., issued a firm warning at a press briefing in Lagos that any entity that transacts business on the acquisition or sale of 9mobile does so at their own risk. They added that their client is also demanding a refund of its initial investment in Etisalat.

“Our client and three other investors put in about $100m as of 2009. The $100m was used in providing infrastructure for the company. It was this infrastructure that gave EMTS the opportunity to go to the banks to obtain the loan of $1.2bn,” Dr. Atabo explained according to a Punch report.

“Is it proper for United Capital not to recognise the original investor when they got the loan? Assuming they go ahead with the sale, we will not be recognised at all. It is better the issue is sorted out before the sale is completed,” he concluded.

Should the Court's judgement be upheld, it would delay the much awaited sale of 9Mobile.

Last week, there unconfirmed reports that Mike Adenuga's Globacom had won the bid for 9Mobile but on Friday, the company issued a press statement and made it clear that "it has not acquired 9Mobile as widely reported in the media.”

"We are bound by the terms of the acquisition process as stipulated by the authorities handling it and we will not in any way sway or deviate from the rules," it added.