Court throws out suit on sale of 9mobile

A Federal High Court sitting in Ikoyi, Lagos yesterday threw out a suit filed by Spectrum Wireless Communications Limited against Emerging Markets Telecommunications Services (EMTS), owners of 9mobile, challenging the sale of the company.

Justice CJ Aneke in a ruling on the preliminary objections file by counsel to EMTS upheld the defendant’s prayers that there was no direct shareholding relationship between Spectrum Wireless and EMTS, thereby vesting on Spectrum the right to sue EMTS to protect its alleged shareholding in EMTS.

The court also upheld the defendant’s position that there was no privity of contract between EMTS and Spectrum as Spectrum was not a shareholder in EMTS and could not be said to have been directly affected by the actions of its shareholders - Mubadala Holdings Cyprus Ltd, Myacynth and Etisalat International Nigeria Ltd.

Justice Aneke also held that Spectrum was not a party to the credit facilities which it claimed were unlawfully obtained; and it was elementary law that only parties to a contract could make judicial claims in respect thereof. The Court therefore dismissed the suit in its entirety.

It would be recalled that Spectrum Wireless Communications had sued EMTS and 16 other defendants including United Capital Trustees Limited (‘the Lenders’), the Central Bank of Nigeria and the Nigerian Communications Commission over the sale of the telecommunication company.