Etisalat Nigeria has dropped its trade name and would henceforth be known as 9Mobile.
9Mobile is also expected to drop the domain name, www. etisalat.com.ng, following the ultimatum handed to the telecommunications company by Abu Dhabi based, Emirates Telecommunications Corporation (ETC) also known as Etisalat.
The Abu Dhabi telco terminated its management agreement with its Nigerian arm and gave it the business time of three weeks to phase out the brand in Nigeria. Etisalat Nigeria is trade name with which Emerging Markets Telecommunication Services Ltd. (EMTS) operated before they were sacked.
Recall the Nigerian Communications Commission (NCC) and Central Bank of Nigeria (CBN) had intervened to save Etisalat Nigeria from collapse after talks with its lenders to renegotiate a $1.2 billion(N44bn) loan failed.
Hatem Dowidar, Chief Executive, Etisalat International said that, the company has given the operators few weeks to phase out Etisalat in Nigeria
He said the company, with a 45 percent stake in the Nigerian business, is transferring its shares to a trustee after talks to renegotiate a $1.2 billion(N44bn) loan failed adding that all UAE shareholders of Etisalat Nigeria, including state-owned investment fund Mubadala, had exited the company and left the board and management. “There’s a new board and we are not part of that company. We have sent our termination letter for the management agreement.”
Etisalat Nigeria took out a loan with 13 local lenders in 2013 to refinance an existing loan and fund expansion but struggled to repay four years later.
When asked if the company will return to the country anytime soon, Dowidar said “The train has left the station on that one. Being in that market as an investor … are we willing to risk more money compared to the reward for the long-term?”.
Etisalat is among the top two in markets such as the UAE, Saudi Arabia, Morocco, Egypt and Afghanistan. Nigerian banks 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. 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”, he explained.