9mobile may soon wear a new look as its leadership has been changed.
Emerging Markets Telecommunication Services Limited, the parent company of 9mobile, recently sold its majority stake to LH Telecommunication Limited, although the financial implications of the transaction were not disclosed.
Following the acquisition, the telecom company, formerly known as Etisalat Nigeria, will form a new leadership board, indicating a fresh leadership structure subject to regulatory approvals.
The board issued a statement yesterday noting that the acquisition, approved by the Nigerian Communications Commission and the Federal Competition and Consumer Protection Commission, allows a new board to take over the struggling telecom operator previously acquired by Teleology Holdings with high hopes of turning it around.
According to the statement, the board under the new leadership noted that “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 favour of the new investor by the issuance of new shares amounting to 95.5 per cent of 9mobile to the new investor in consideration for the injection of fresh capital into the company.”
Recall that prior to Teology Holdings’ acquisition of the company and even after, 9mobile continued to struggle in the telecommunications market in Nigeria. It suffered customer attrition, which led to its significant loss of subscribers, from over 22 million in October 2016 to just over 15 million in November 2018.
According to Telecoms data made available by the National Bureau of Statistics early this month, 9mobile currently has the most minor performance in the market with a staggering 11.7 million voice subscribers and 3.3 million internet users.
Meanwhile, sources have revealed that Obafemi Banigbe was appointed the company’s new Managing Director and Chief Executive Officer a few weeks ago. He is expected to bring the extensive experience he gained while working at the C-suite level and his profound understanding of the African business landscape to bear as the new leadership seeks to drive the struggling company through its transition phase and recovery.
Similarly, Thomas Etuh was appointed chairman of the new board. At the same time, Nahim Ibraheem and Femi Edun will join as new members, along with former Nigerian Senator Daisy Danjuma, Michael Ikpoki, Ibrahim Puri, Gloria Danjuma, and Emmanuel Etuh.
According to a report by Punch, 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.
