We aren’t aware, says Etisalat

Posted by Kunle Azeez


Globacom Chairman and one of Nigeria’s billionaires, Dr. Mike Adenuga, is reportedly making moves to acquire Etisalat as the latter continues to face debt crisis, New Telegraph has learnt.

The development is coming as Etisalat continues to show distress signs evident in its inability to expand its network as it is enmeshed in a $1.2 billion loan.

The inability of the Etisalat to repay the huge loan taken from a consortium of banks in 2013 nearly resulted in a takeover of the United Arabs Emirates (UAE) telecoms company by the creditors last March.

However, quick interventions by the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN) prevented what could have resulted in a receivership.

“With the ongoing financial challenges facing Etisalat, there are ongoing underground discussions of its possible sale to a Nigerian GSM company owner, who is also into an oil business and this could be Mr. Mike Adenuga of Globacom,” a former management staff of Etisalat disclosed.

Another industry source said: “Etisalat could be acquired by another company if the ongoing discussions with the banks fall through eventually.”

According to Forbes’ Billionaire Ranking 2016, Adenuga, with a net worth of $10 billion, is Nigeria’s second richest man while his most visible company, Globacom, where he sits as Chairman, is the second largest operator in Nigeria.

Adenuga made his first fortune trading in lace and Coca-Cola, but currently makes his fortune from investment in telecommunications and oil.

He currently ranks as the 103rd richest person in the world compared to 2015’s 393rd and a net worth of $4.2 billion, despite the effect of the dwindling oil prices on his company. But spokespersons at Globacom headquarters in Lagos could not confirm the development as at press time yesterday.

Also speaking on telephone, the Vice President for Regulatory Affairs at Etisalat Nigeria, Mr. Ibrahim Dikko, denied any knowledge of the ‘said acquisition.”
“I am just getting to know now that you are telling me.

However, I don’t have any information at my disposal regarding your question on the proposed acquisition by the Globacom founder,” he said. Dikko had stated at the wake of the loan crisis last March that Etisalat missed payments to the banks due to an economic downturn in Nigeria.

This newspaper had exclusively reported that Etisalat has been facing ‘down-syndrome’ in its subscriber outlook, as over 2.9 million subscribers have, so far, quit the network in the last 10 months.

Industry analysts link the development to the financial distress of the telecom company, which they argue, has prevented it from engaging in meaningful infrastructure expansion, thereby resulting in debilitating service quality that repel its customers to move to rivals’ networks.

According to an NCC document, as at last September, ending third quarter, there were 22.5 million active subscribers on Etisalat network, but this figure dropped to 20.8 million by December, representing a loss of 1.7 million subscribers within three months.
Similarly, in the first quarter of this year, the telecom communication company lost 1.2 million subscribers as well.

Meanwhile, in a statement made available yesterday on the state of the loan negotiation, Etisalat confirmed that it was still in discussions with its lenders regarding existing obligations under the syndicated loan agreement signed in 2013. It, however, said it had not received any formal communication from the lenders regarding the proposal.

“Whilst we are aware of recent news reports stating that the offer has been rejected by the banks, we cannot confirm this as true as no formal communication has been received from the banks regarding the proposal. “Etisalat has, so far, held robust discussions with lenders in good faith, and we hope that all areas of discord will be resolved in due course.

Indeed, the current economic challenges have occasioned untold hardship on the telecom industry as a whole, , thus requiring a major shift in position by all affected parties.

“We continue to explore all available options to pull through this phase. We will continue to engage all relevant parties in earnest with a view to securing a mutually-agreeable outcome,” it said in the statement.

The telecoms company maintained that it was not taking anything off the table at this time while assuring stakeholders that the ongoing discussions were not intended nor expected to impact negatively on the company’s ability to continue providing seamless communications services to its subscribers.

https://newtelegraphonline.com/2017/06/globacom-boss-adenuga-eyes-etisalat/

lalasticlala

it's like fidelity Bank eyeing First Bank....mere dreams. The money of swindled Glo Data subscribers will not allow his wicked thoughts come to fruition.

103rd richest person? that's impressive.

wow,ncc won't allow that but what happened to etisalat Qatar financiers?

It's like Giroud dreaming of becoming Messi...when you can't even handle glo ng...kolewerk

He hasn't handled Glo efficiently na Etisalat e dey eye..

Seems he has so much money to waste..

Or shagging Toke Makinwa gives him sloppy business ideas

That would be a nice way to improve their data services

never eye the one way you get finish

Too much money

Why does the rich in Nigeria always endeavor to see the poor suffer .
Etisalat dat has always put smiles on our faces u want to buy it to ensure that we all frown while surfing d internet.

Lai Lai ko le werk. Ogbono network buying Egusi network. Abeg I nor wan draw o. Glo network is strictly for the patient ones
#Glo=Endurance

Please, do so.

Can't wait to have a better network and a more available 4G band

no go spoil eti with bad network

I think we can all work together as a team and buy etisalat before Adenuga. Let's contribute. How much each person get? I dey count everything for my wallet now.

Don't eye it o...don't comman spoil Etisalat network for us!

Stick to your glo and bad network

if he eyes it let him buy it

Biko he shouldn't eye it. He will now transfer Glo snail speed to Etisalat blazing data

it will be a great move in the telcom industry

he should focus on improving glo internet service

DieBuhari:
This man wants to bring his typical Yoruba incompetence to etisalat.
God forbid

You must be Mad and you are Mad.

Must everything be politics. You from a cursed tribe in Nigeria. Never you idiot pull Yoruba into sending you away from Yorubaland. Go and face the ultimatum given to you in the North and stop dragging Yoruba to what does not concerns you. We are watching you guys. Why wouldn't you guys be hated?

The same say I'm eyeing this girl beside me since the class has begun?

When ever I read 1Timothy 6 vs 7..............
Weldone Bro

As much as I hate glo with passion for their poor internet services I think it is a welcome development for a Nigerian to acquire the company instead of these other investors from outside the country.

My reasons:

1. Foreign investors would result to capital flight since most of the ROI would always be sent abroad to build their economies.

2. The company going under would lead to a lot of job losses and possible dent to tax revenue from the govt

3.MTN buying etisalat would further solidify their presence and weaken competition since they are way ahead competitively.

These are my thoughts though, a mere hypothesis may not actually be the truth.

Open to criticisms

First put your house in order before looking to aquire another man's home.
Glo services at best are apologetic.
Why take on more than you csn chew?
Only reason this acquisition will be of any value is if it will improve the current services that are on offer with Glo.

Abeg o! He shouldn't come and curse us with slow network

He should not near there o!