Justice Binta Nyako of the Federal High Court Abuja ruled that the status of the company from April 25, 2018 should be restored.
“Any action that has been taken concerning the res of this litigation from the 25th day of April, which is earlier in time, should revert to the position, as of the res, to its 25th day of April 2018,” the judge ruled.
Afdin Ventures Limited and Dirbia Nigeria Limited, who are major investors in Etisalat had via a motion filed on November 16, 2018, asked the court to nullify the steps taken by the defendants with respect of the sale of Etisalat which they claimed violated the April 17, 2018 order.
The court had on April 17, August 31 and October 10, 2018, restrained parties to the suit, involving investors and other shareholders in the company, from destroying the “res,” the subject matter in dispute in the suit.
The defendants in the suit are Karington Telecommunication Ltd, Premium Telecommunications Holdings NV, First Bank of Nigeria Plc, Central Bank of Nigeria, Etisalat International Nigeria Ltd and Nigeria Communication Commission.
The plaintiffs laying claim to an estimated $43,033,950 investment in Etisalat, had said that they were aggrieved by what they described as ‘exclusion from the decision-making of Etisalat.’
On that basis, they had filed their suit to retrieve their investments in the company.
The stated in an affidavit filed in support of their November 16, 2018 application, that they learnt that the defendants had proceeded to conclude the transfer of the ownership of the company despite the court restraining orders.
They said following the defendant’s disobedience they resorted to praying the court to void the sale of Etisalat.
“In 2009, the plaintiffs/applicants purchased a total of 4,303,391 class “A” shares from the 1st, second and fifth defendants (Karlingtton, Premium Telecommunication and Etisalat International) at the rate of $43,033,950 only, and were issued with share certificates.
“In 2010, the defendants rebranded Etisalat Nigeria Limited to 9Mobile and entered into negotiations with Smile.com and Glo Network to transfer its licence without recourse to the plaintiffs.
“When the plaintiffs became aware of the purported transaction, they filed this suit along with two applications namely: motion ex-parte and motion on notice, seeking for an order of injunction to restrain the defendants from going ahead with the transaction.
“When this suit came up for hearing on April 17, 2018, this honourable court ordered parties to maintain status quo-pending the determination of the motion on notice.
“Notwithstanding the aforementioned order, the defendants continued negotiations with Smile.com and Glo Network in defiance to the subsisting order of this court.
“When the plaintiffs/applicants discovered that the defendants were bent on selling Etisalat Nigeria Limited “rebranded 9moile” despite the subsisting order of court, they instructed their Counsel Mahmud A. Magaii (SAN) to write and caution the defendants of the implications of their actions.
“Upon receipt of the above letters, the third and fourth respondents (First Bank and Central Bank), through their counsel Olaniwun Aiayi wrote to the applicants, through their counsel on August 24, 2018 and August 31, 2018, denying the existence of the order of status quo made by this honourable court on the April 17, 2018 and August 31, 2018.
“When this matter came up on October 10, 2018, counsel to the plaintiff Okechukwu Edeze, informed the court of the attempts made by the defendants to sell Etisalat Nigeria Limited.
“Consequently, this honourable court made another order of status quo, directing parties to refrain from tampering with the subject matter of the suit.
“Despite the orders of this honourable court made on October 10, 2018, the defendants went ahead
The hearing in the substantive suit has been fixed for June 12.
Last November, Nigeria’s telecoms regulator has cleared Teleology’s takeover of 9mobile, the country’s fourth biggest operator, ending a long bidding process for the debt-laden company that started a year ago.
Investment holding company Teleology, which was set up by 12 telecoms industry veterans led by ex-MTN Nigeria executive Adrian Wood, said it had appointed new directors to run 9mobile, following approval from Nigerian Communications Commission (NCC).
Teleology was picked as preferred bidder for 9mobile in February, following a bid process arranged by Barclays Africa, after a debt default forced 9mobile’s lenders to step in.
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