Thursday, 13 July 2017

It's No Longer Etisalat but 9Mobile

Telecommunication giant, Etisalat has changed its name from Etisalat to 9Mobile. The name change is necessitated by the recent exit from Nigeria, of the Etisalat International which holds 45% stake in the mobile operator.
It could be recalled that some weeks ago Mubadala Group, the major investor from the United Arab Emirates, pulled out of Nigeria’s fourth largest mobile operator, due to a N541 billion debt. This was followed by the appointment of a new board to manage the company.
 Etisalat had terminated a management agreement with its Nigerian arm and will phase out the brand in three weeks. Emerging Markets Telecommunication Services Ltd. (EMTS), trading as Etisalat Nigeria had ran into debt crises which culminated in the present change of name.
Last week Reuters reported that the Chief Executive of Etisalat International, Hatem Dowidar, said the company with a 45% in the Nigerian business, is transferring its shares to a loan trustee after the talks had failed. Dowidar also confirmed that all UAE shareholders of Etisalat Nigeria, including state-owned investment fund Mubadala, have left the company.
“(Nigerian) lenders may try to continue to operate the company until they find a buyer (or) they may merge the company with the existing players in Nigeria, he said, adding that it was tough to say what lenders would do.
“The brand agreement in either of these two scenarios won’t be a long-term thing, so we take out the brand; in the long term Etisalat won’t be in Nigeria.”
There are 21 million Etisalat subscribers in Nigeria.

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