9mobile debunks reports of court order to pay N55bn debt to Keystone Bank

The 9mobile has dismissed as untrue reports suggesting that the company has been ordered by a court to pay a N55 billion debt to Keystone Bank.

In a statement released at the weekend, the Board of Directors 9mobile, also known as Emerging Markets Telecommunication Services Limited, stated that it is not involved in any legal dispute related to the alleged debt.

Soecifically, the 9mobile’s position clarified a controversy regarding its minority shareholder, Teleology Nigeria Limited.

The statement stated that media reports, dated Friday, July 19, 2024, suggesting that a Federal High Court in Ikoyi, Lagos, had issued a judgment against 9mobile for the repayment of the debt is incorrect

The 9mobile said it was not a party to the legal proceedings and was not affected by the court order.

According to the statement, “The Management of 9mobile wishes to inform the concerned public and critical stakeholders that, contrary to these misleading reports, Emerging Markets Telecommunication Services Limited, trading as 9mobile, was neither a party to any suit nor affected by the order reportedly made against it.”

Indeed, the legal dispute involves Teleology Nigeria Limited, which reportedly failed to meet the terms of a loan from Keystone Bank, intended for financing the acquisition of assets in 9mobile.

Keystone Bank’s counsel, Bode Olanipekun, SAN, claimed that despite offers to restructure the loan, Teleology did not comply with the conditions. The situation reportedly escalated when PAC Ltd. proposed converting the debt into equity, with no immediate repayment.

The statement insisted there was nothing linking 9mobile, stressing that the reports are “false and maliciously misleading.”

The company explained that the lawsuit was correctly filed as “Keystone Bank v. Teleology Nigeria Limited,” and not against 9mobile.

The company said it is under new ownership, with a 95.5 per cent controlling stake, and thus not liable for the actions of its minority shareholder.

It, however, assured stakeholders that it is undergoing a business transformation program aimed at reclaiming its market position.

Teleology Holdings acquired 9mobile, formerly known as Etisalat Nigeria, in November 2018.

However, the acquisition faced challenges, including Teleology’s withdrawal from the project shortly after the acquisition due to operational difficulties and dissatisfaction with its local partnership.

This clarification comes as 9mobile seeks to distance itself from ongoing financial and legal issues associated with its previous minority shareholder, aiming to focus on its business revitalization and market presence.