Connect with us

Markets

Court Halts Sale of 9mobile, Shareholders Led by Mangal Demand $43.3m Refund

Published

on

9mobile
  • Court Halts Sale of 9mobile, Shareholders Led by Mangal Demand $43.3m Refund

Justice Binta Nyako of the Federal High Court, Abuja, Wednesday stopped the planned sale of 9mobile (formerly Etisalat Nigeria) following the opposition to the transaction raised by some aggrieved shareholders of the company.

Justice Nyako gave the order stopping the sale while ruling on an ex parte motion brought by the shareholders.

One of the companies said to be a shareholder in 9mobile and is a plaintiff in the suit, is owned by Katsina businessman, Alhaji Dahiru Mangal.

The order by the court will put a spanner in the bid by Teleology, which emerged preferred bidder in the sale process for 9mobile.

Teleology last month paid a $50 million non-refundable deposit for 9mobile and was given 90 days to pay the balance of $450 million to conclude its acquisition of the telecoms firm.

But Afdin Ventures Limited and Dirbia Nigeria Limited, who claimed to be “major investors” in Etisalat Nigeria, which was renamed 9mobile after the company’s Abu Dhabi-based investors – Etisalat Group – exited the Nigerian telco last year, complained of being left out in the firm’s decision making and are demanding a refund of their investment in 9mobile to the tune of $43,330,950.

The suit marked: FHC/ABJ/CR/288/2018 has Karlington Telecommunications Ltd, Premium Telecommunications Holdings NV, First Bank of Nigeria Plc, Central Bank of Nigeria, Etisalat International Nigeria Ltd and Nigerian Communications Commission (NCC) as defendants.

Ruling on the ex parte moved by plaintiffs’ lawyer, Mahmud Magaji (SAN), the court held that “an order is made for the maintenance of status quo as at today”.

Justice Nyako, however, added that the defendants ought to be heard and consequently ordered the service of processes on the defendants, including the 3rd and 5th (First Bank and 9mobile/Etisalat), whose addresses are outside the jurisdiction of the court.
The court in addition ordered that “the writ be marked as concurrent” and adjourned to May 14 for mention.

In a statement of claims, the plaintiffs said that they bought shares in Etisalat from the 1st and 2nd defendants (Karlington Ltd and Premium Holdings) through a private placement memorandum in which the 3rd defendant (First Bank) served as the custodian of the plaintiffs’ share certificates.

According to them, the 1st plaintiff (Afdin Ventures) bought 1,300,391 Class A Shares at $13,003,910, which it paid for on August 14, 2009; the 2nd plaintiff (Dirbia Ltd) acquired 3,300,004 Class A Shares at $30,030,040, for which it made payment on September 3, 2009.
The plaintiffs said they paid for the shares through the 1st and 2nd defendants’ First Bank accounts.

In a supporting affidavit, the general manager of the 1st plaintiff and a director in the 2nd plaintiff, Sani Ibrahim, claimed that the problem with 9mobile resulted from the mismanagement of its funds.

He said the plaintiffs’ grouse arose from not only the firm’s mismanagement, but its inability to declare dividends from 2009 to date and the attempt by the defendants to conduct a clandestine sale of the company to the detriment of the plaintiffs.

Ibrahim stated that in 2015, the 1st, 2nd and 5th defendants took several loans from 13 Nigerian banks with a view to expanding and boosting their telecoms business, but the money was not properly utilised, leading to heavy indebtedness by 1st, 2nd and 5th defendants.

He added that owing to the resultant indebtedness, the 1st and 2nd defendants rebranded the 5th defendant (Etisalat) and changed its name to 9mobile with a view to selling it off and obtaining money to pay its numerous debts.

According to Ibrahim, “The 1st, 2nd, 3rd and 5th defendants have failed to declare dividends on the shares of the plaintiffs since 2009 till date.

“The 1st, 2nd, 3rd and 5th defendants have completed arrangement to sell the rebranded 9mobile to Smile.Com and Glo Network, among others, without the knowledge of the plaintiffs, who are its major investors.

“If not restrained, the 1st, 2nd, 3rd and 5th defendants will sell Etisalat Nigeria (also known as 9mobile) and disappear with the plaintiffs’ investment.”

The plaintiffs want the court to, among others, declare that the planned sale of 9mobile without paying the plaintiffs the money that they invested in the telecoms firm is unlawful.

They also urged the court to order the 1st, 2nd, 3rd and 5th defendants to refund to the plaintiffs the sum of $43,330,950 with which they bought 4,303,395 shares at $10 per share.

The plaintiffs equally prayed the court to award N1 billion in general damages against the defendants and in their favour.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Continue Reading
Comments

Energy

NNPC Increases Fuel Price, Sells Pump at N1,030 Across Outlets

Published

on

Petrol pump price has risen to N1,030 per litre at various outlets of the Nigerian National Petroleum Company Limited (NNPCL) in Abuja on Wednesday.

The recent development comes after the NNPC decided to terminate its exclusive purchase agreement with Dangote Refinery.

The company had on Monday announced an end to its exclusive purchase agreement with Dangote Refinery, opening up the market for other marketers to buy petrol directly from the refinery.

This means the NNPC will no longer be the sole off-taker, and marketers can now negotiate prices directly with Dangote Refinery.

This development aligns with the current practices for fully deregulated products, where refineries can sell directly to marketers on a willing buyer, willing seller basis.

Investors King had reported on Tuesday that oil marketers accused Dangote Refinery of ignoring its call for lifting of petrol.

However, checks on Wednesday at NNPC Ltd outlets in the Central area of Abuja, the Federal Capital Territory, showed that the price of the Premium Motor Spirit had been adjusted upward with the pump price of petroleum hitting N1,030.

Customers at the station also confirmed that the price of fuel was changed from N897 to N1,030.

At several other outlets in the Wuse, Lugbe area of the capital city, the pump price equally jumped to N1,030 as motorists and commuters grumbled amid the uncertainty.

Continue Reading

Crude Oil

Italian Prosecutors Sentenced to Jail for Concealing Evidence in $1.3 Billion Nigerian Oilfield Case

Published

on

Oil

An Italian court has sentenced two Milan prosecutors, Fabio De Pasquale and Sergio Spadaro, to eight months imprisonment for concealing evidence in an alleged corruption case involving a $1.3 billion oilfield in Nigeria.

The court found the duo guilty after it was established that they failed to file documents that could have supported Eni’s defense in the trial.

Regarded as one of the energy industry’s most significant corruption trials, the case which involves Eni and Shell centered around the $1.3 billion acquisition of a Nigerian oilfield.

In 2020, the Nigerian government filed a case against Shell/SNUD and Eni asking for compensation in the sum of $1.3 billion over an Oil Prospecting License 245, also known as OPL 245.

The case which had dragged on for over a decade came to a halt when the Ministry of Justice withdrew its petition in an Italian Court in March 2024.

Meanwhile, an international Court in Italy had already declared Shell and its affiliate partners not guilty on all counts.

Nigeria also decided to “irrevocably” suspend any future legal claims in Italy against Eni, its affiliates, as well as present and former officers concerning rights related to the field.

Meanwhile, delivering judgement on the refusal of the prosecutors to tender evidence, the court stated that De Pasquale and Spadaro had omitted key evidence, including a video from a former Eni external lawyer that could have been favourable to the defence.

The court sitting in Brescia and has jurisdiction over judicial matters in Milan had listened to the argument of the prosecutors who accused De Pasquale and Spadaro of withholding evidence that could have influenced the outcome of the Eni-Shell trial, thereby infringing on the defendants’ rights.

Responding to the charges, the prosecutors’ lawyer sought a full acquittal, arguing that no explicit rule mandated the filing of documents by prosecutors in such cases.

In March 2021, a Milan court acquitted Eni, Shell, and all other defendants, despite criticisms of the prosecutors’ conduct.

Judges ruled that the two prosecutors had a legal duty to submit evidence that might have aided the defense. The lawyer did not offer immediate comments following the conviction.

Afterward, the Brescia court sentenced the duo to eight-month jail term as requested by the prosecutors.

Continue Reading

Energy

Direct Petrol Lifting: Oil Marketers Accuse Dangote Refinery of Frustrating Efforts at Making Fuel Cheaper 

Published

on

Crude oil - Investors King

Oil marketers in Nigeria have alleged that the Dangote 650,000 barrels per day Lagos-based refinery has been snubbing them on their demand to directly lift its Premium Motor Spirit, popularly known as petrol.

They hinted that the development is a setback on their efforts at making fuel sell cheaper across filling stations in the country.

The President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi and the President of the Petroleum Products Retail Outlets Owners Association, PETROAN, Billy Gillis-Harry assured that if they are allowed to directly lift petrol from Dangote Refinery, it would make the product sell lesser.

Recall that the Nigerian National Petroleum Company Limited announced that it is quitting its role as sole off-taker of Dangote Petrol, thus forcing oil marketers and Nigerians to be in a waiting state.

Speaking on the development, Maigandi said all efforts put forward by IPMAN to meet with Dangote Refinery’s management have not yielded results and that messages sent to the refinery for direct lifting of its petrol were not replied to.

As of Monday this week, the oil marketers said they have not been able to have any of their proposed meetings with Dangote Refinery and neither has any feedback been given by Dangote Refinery on direct sales of its fuel.

They said it was difficult for them to make comments on the price of Dangote Petrol since they have not been able to buy it directly.

Notwithstanding, they assured that there would be a reduction in the price of petrol which currently goes between N950 and N1,200 per liter if Dangote Refinery agrees to sell the product directly to them.

Maigandi, while describing the expected reduction in the price of PMS as “small”, noted that NNPCL sold petrol to oil marketers at N840 and N870 per liter depending on the location, adding that “we sell at N950 in Abuja depending on the location.”

Speaking on NNPCL quitting role as sole off-taker of Dangote Petrol, Maigandi stressed that oil marketers are waiting to hear from Dangote Refinery on whether petrol could be lifted directly.

Gillis-Harry’s position was not different as he corroborated his counterpart’s submission that Dangote Refinery refused to sell its petrol directly to marketers.

According to him, despite attempts by petroleum marketers to have business discussions with Dangote Refinery, they have not received the green light.

He said the association had attempted to have a business discussion with Dangote Refinery on direct petrol lifting but as of the time of filing this report, the refinery has not given them greenlight.

Meanwhile, the spokesperson of Dangote Group, Anthony Chiejina said he was not aware of the allegations.

On September 15, the Dangote Refinery announced the inaugural distribution of its petrol with NNPCL as the sole buyer.

Upon the lifting of Dangote Petrol last month, had announced a fresh fuel price hike between N950 and N1,100 per litre across its retail outlets.

The fuel price adjustments came on the back of NNPCL’s stance that it bought Dangote petrol at N898 per liter, however, Dangote disagreed.

The oil firm, owned by Africa’s richest man, Aliko Dangote had hinted that its petrol pump price would be announced by the Presidential Implementation Committee on Naira-for-crude sales.

However, despite the kick-off of the Naira-for-crude with the expected supply of 24 million barrels by October and November 2024 by the Nigerian government, the price per liter of Dangote Petrol has remained a subject of controversy.

Last month, the House of Representatives urged Dangote Refinery to allow oil marketers to lift its petrol directly.

Earlier, refiners and marketers had hinted that the commencement of the Naira-for-crude sales deal with Dangote Refinery and other refineries would lead to a drop in the pump price of petrol.

Continue Reading
Advertisement
Advertisement




Advertisement
Advertisement
Advertisement

Trending