Board of Directors of Emerging Markets Telecommunication Services Limited, trading as 9mobile, has refuted reports suggesting that a court ordered the company to pay a N55bn debt to Keystone Bank.
In a statement at the weekend, the telecommunications company clarified that it was not a party to any legal suit or court order related to the debt.
The legal dispute involves only its minority shareholder, Teleology Nigeria Limited.
“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,’” 9mobile stated.
“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, a section of the media reported that a Federal High Court in Ikoyi, Lagos, ordered Teleology Nigeria Ltd. to pay the sum owed to Keystone Bank.
Bode Olanipekun, SAN, Keystone’s counsel, claimed Teleology failed to service the loan used to finance its acquisition of assets in 9mobile.
Despite Keystone Bank’s offer to restructure the loan, Teleology did not meet the conditions set forth. Instead of repayment, the plaintiff received a proposal from PAC Ltd. suggesting a debt conversion to equity with no immediate repayment.
9mobile emphasised that the reports were false and defamatory, impacting its corporate reputation.
“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.”
9mobile highlighted that it is under new ownership, with a 95.5 per cent controlling stake in the business, and has not been found liable for the actions of its minority shareholder in the ongoing legal tussle.
“Our business transformation program has commenced, and we are poised to reclaim our place in the market,” 9mobile assured.
Teleology Holdings acquired 9mobile, previously known as Etisalat Nigeria, in November 2018 after a lengthy bidding process. However, just two months later, Teleology announced its withdrawal from the project due to dissatisfaction with its local partnership and operational challenges.
This decision jeopardised the initial $50m deposit made for the acquisition and highlighted ongoing financial difficulties faced by 9mobile, which has seen a significant decline in subscribers since its financial troubles began in 2017.