Etisalat Nigeria gets deadline to stop use of brand name - 9JAOlofofo | Nigeia #1 gossip site.

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Tuesday, 11 July 2017

Etisalat Nigeria gets deadline to stop use of brand name

The Chief Executive of Etisalat International, Hatem Dowidar, told Reuters yesterday that Abu Dhabi’s Etisalat had terminated its management agreement with its Nigerian arm and given the business time to phase out the brand in Nigeria. • Group formally pulls out, firm shops for new investors • ALTON, ATCON assure 20m subscribers of protection The crisis rocking Etisalat Nigeria deepened yesterday with a directive from the Emirates Telecommunications Corporation (ETC), the largest shareholder in the embattled firm, that the Nigerian arm should stop using the brand name within the next three weeks. The implication is that the new management must decide within the next 21 days on the options before it, which are either an outright sale of the company or merger with an existing operator in the country. Etisalat, which controls 13 per cent market share in Nigeria, has had a running battle with a consortium of 13 banks since March, after it notified them of its inability to service its $1.2 billion debt in February due to the foreign exchange challenges in the country. The firm had through its Vice-President, Regulatory & Corporate Affairs, Ibrahim Dikko, three weeks ago, claimed that it had repaid 42 per cent of the loan. “As at today, we can categorically state that the outstanding loan sum to the consortium (of banks) stands at $227 million and N113 billion, a total of about $574 million if the naira portion is converted to U.S. Dollars. This, in essence, means almost half of the original loan of $1.2 billion, has been repaid.”

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