Legal firework looms over Etisalat sale
There appears to be a legal firework in the offing over the sale of Etisalat as the Federal High Court in Abuja set aside the purported sale of Etisalat (9mobile) to Teleology Nigeria Ltd. Justice Binta Nyako in a ruling yesterday also voided all steps taken on the exchange of ownership of Etisalat in spite of pending orders for maintenance of status quo.
The Federal High Court Judge Nayko who held that parties were all aware of the existence of the suit (the defendants having been served between April 24 and 27, 2018 with the originating process), faulted the sale of the company as claimed by the plantiffs in a motion filed November 16th, 2018.
“Any action that has been taken concerning the subject matter of this litigation from April 25, 2018 which is earlier in time, should revert to the original position”, she said.
The ruling was given in a suit No: FHC/ABJ/CS/288/2018 filed on April 6, 2018 by two major investors in Etisalat: Afdin Ventures Ltd., and Dirbia, whose investments in Etisalat were estimated at $43,033,950 had gone to court to retrieve their stakes on the ground that they were aggrieved, having been excluded from the decision making process of the company.
Defendants in the suit include Karington Telecommunication Ltd., Premium Telecoms Holdings NV, First Bank of Nigeria Plc, Central Bank of Nigeria, Etisalat Nigeria Ltd., and Nigeria Communications Commission. Meanwhile, the management of Emerging Markets Telecommunications Ltd. (EMTS) which traded as Etisalat in its reaction said the news that a court nullified the sale of EMTS to Teleology Nigeria Ltd. is not true. It described the report as incorrect, misleading and mischievous and a total falsehood.
“The Federal High Court Abuja did not nullify the sale of EMTS. The court on 1st April, 2019 made an order for parties to maintain status quo as at April 25, 2018. As at the said date, EMTS (9mobile) was not a party to the suit before the court. The action before Justice Binta Nyako of the Federal High Court is not about the sale of EMTS (9mobile) but rather, the transfer of the license even without locus standi”, the telecommunications country firm claimed.
Company Secretary/Legal Adviser, 9mobile, Ore Olajide said “the sale of 9mobile to Teleology Nigeria Ltd. has not been nullified. The court made an order to maintain status quo as at April 25, 2018 when EMTS was not a party to the suit and we have appealed the ruling as well as sought an injunction pending appeal at the Court of Appeal”.
Olajide said EMTS is assuring its subscribers and stakeholders to remain calm as matters are under control. “We are working with our team of legal counsel to follow through, as deemed necessary. EMTS remains focused on providing the best in class telecommunications service to its subscribers and will provide necessary updates in due course”.
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