Etisalat International has given Etisalat Nigeria three weeks to change its brand name.
The decision of the Abu Dhabi owned telecommunications network was taken after announcing its exit from the management agreement with Etisalat Nigeria.
According to Hatem Dowidar, Chief Executive Officer, Etisalat International, the decision of the Abu Dhabi owned telecommunications network resulted after its $1.2 billion loan talks collapsed.
He said that there was no need for the brand to stay in Nigeria after the collapse of the loan talks.
Etisalat Nigeria took-out a $1.2 billion loan with 13 lenders in 2013 to refinance an existing loan and fund expansion, but struggled to repay four years later.
Dowidar said discussions were ongoing with Etisalat Nigeria to provide technical support, adding that it can use the brand for another three weeks before phasing it out.
He said 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,” he told Reuters.
Dowidar said parent Etisalat had written down the value of the Nigerian business on its books and that transferring its 45 percent stake to the lenders after loan renegotiation talks collapsed had no impact on the group.
Asked whether Etisalat would consider entering Nigeria again, 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?”
