LH Telecoms Nigeria, a subsidiary of Light House Capital, has acquired a 95% stake in Emerging Markets Telecommunication Services Limited, the parent company of 9mobile.
The acquisition, which has received approval from the Nigerian Communications Commission and the Federal Competition and Consumer Protection Commission, marks a significant turning point for the struggling telecom operator.
In a statement released on Sunday, the company announced that the deal has been greenlit by the African Export-Import Bank (AFREXIM), the senior lender to 9mobile since May 2023.
As part of the transaction, new shares amounting to 95.5% of 9mobile were issued to LH Telecoms Nigeria in exchange for an injection of fresh capital.
This change in control aims to bring stability and new investment to the company, allowing it to better compete in Nigeria’s fiercely competitive telecom market.
With the acquisition complete, a new board has taken the helm of 9mobile.
Thomas Etuh will serve as Chairman, with Nahim Ibraheem and Femi Edun joining as members.
The UK firm behind the investment has also nominated a diverse group of individuals to the board, including former senator Daisy Danjuma, Michael Ikpoki, Ibrahim Puri, Gloria Danjuma, and Emmanuel Etuh.
Obafemi Banigbe has been appointed as the new Managing Director and Chief Executive Officer.
Banigbe, whose appointment was announced a few weeks prior, is expected to lead the company through its transition and drive its recovery.
He brings extensive experience at the C-suite level and a deep understanding of the African business landscape.
This acquisition comes at a crucial time for 9mobile.
Formerly known as Etisalat Nigeria, the operator was acquired by Teleology Holdings with the aim of a turnaround.
However, the company has continued to struggle, facing significant customer attrition. From a peak of 22 million subscribers in October 2016, 9mobile’s customer base dwindled to just over 15 million in November 2018.
As of the latest data from the National Bureau of Statistics, 9mobile now has 11.7 million voice subscribers and 3.3 million internet users.