Telco's parent company is taking the brand out of Nigeria

folarin okunola

July 10, 2017 7:02 PM

Hatem Dowidar, CEO of Etisalat International, told Reuters this and confirmed that it was giving the company time before completely taking the brand out of Nigeria.

Mr Boye Olusanya- The man with the task of repositioning Etisalat Nigeria.

Hatem Dowidar, CEO of Etisalat International, told Reuters this and confirmed that it was giving the company time before completely taking the brand out of Nigeria.

“There’s a new board and we are not part of that company. We have sent our termination letter for the management agreement,” Dowidar said.

All of Etisalat Nigeria’s UAE shareholders, including state-owned Mubadala, have all pulled out of the company as it battles with take-over attempts by a consortium of 13 banks which it owes a $13 billion loan.

Etisalat Nigeria took the loan in 2013 to service an existing $650 million loan and expand it’s operations across the country. Unfortunately, Nigeria’s economic downturn and forex problems affected the telcos ability to repay the loan.

It sought a restructuring from the consortium of banks which didn’t work out. Two take-over attempts later, its board was dissolved and a new instituted thanks to pressure from the NCC and the CBN. Etisalat Group (UAE) was the last standing investor, till now.

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Dowidar also confirmed that this withdrawal of its brand name will be Etisalat’s last say in Nigeria.

This means that the collapse of Etisalat is a very real possibility, in terms of the brand name at least. There is no word from the NCC or CBN, the two regulatory bodies vested in the matter, or any other players.

So what happens next?

If things remain as they are, Etisalat Nigeria will probably be merged with one of the existing players, or it will be acquired by a new player (or an old one). There has also been talks of an acquisition by Aliko Dangote, Africa’s richest man.

Time will tell.

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