The Nigeria Communications Commission (NCC) and the Central Bank of Nigeria (CBN) have registered their displeasure over the capacity with which Barclays Africa, the financial advisers handling the sale process of 9mobile, has managed the transaction.
The two regulators, in a joint letter to GTBank, the facility agent for the 9mobile syndicated loan, Umar Danbatta, the executive vice-chairman of NCC, and Godwin Emefiele, the governor of CBN, expressed displeasure with the “unwillingness of Barclays Africa” to follow due process in the bid.
In the letter, dated November 4, 2017, the CBN and NCC said they made it clear from the outset that the sale process must be “transparent and fair, with the financial and technical capabilities of the final bidders without question”.
According to the regulators, they now have “serious concerns” since the appointment of Barclays Africa as financial advisers.
“They have repeatedly exhibited signs of opacity in the sale process for 9mobile. Given the overriding public interest in the company and the need for transparency, we advised that Barclays advertise the call for ‘expression of interest’. Barclays declined, insisting instead that the company being a private entity, should not be taken through a public sale,” they wrote.
“This lack of transparent process has proven to be selective and arbitrary, leading to allegations that the process is being teleguided to a rigged and predetermined outcome. The CBN and the NCC will not fold their arms and allow this to materialise.”
Danbatta and Emefiele said they had received reports and petitions from various stakeholders, including some bidders, which have further heightened their concerns— but that their suggestions to the board of 9mobile and Barclays on how to restore credibility to the process have been ignored.
The two government agencies then directed that all steps and decisions taken by the financial advisers as well as other advisers from the end of “expression of interest” must be communicated to them for approval in writing.
They also directed that the final bid process must be “open and transparent” in line with international best practices.
The head of the two regulatory agencies said the December 31, 2017 deadline for the handover of 9mobile to the preferred bidders remains sacrosant. Already the companies listed as preferred bidders include: Globacom Nigeria Limited, Bharti Airtel, Alheri Engineering Limited, Smile Telecoms Holdings, Helios Towers, Centricus Capital, Africell, Abraaj Capital, Teleology Holdings Limited, Ericsson, Africa Capital Alliance (ACA) and The Carlyle Group.
Recall that Etisalat Nigeria changed its brand name to 9Mobile last July after the Mubadala Group, the major investor from the United Arab Emirates, pulled out of Nigeria following a N541 billion debt crises.
The debt is owed to a consortium of 10 banks, with GTBank acting as the facility agent.
The sale of 9mobile, with 21 million subscribers, is expected to bring in the needed capital to restore it to good health, after its indebtedness to the banking consortium almost sent it to its early grave.