It has not been confirmed yet… But there are possibilities that Nigeria’s second wealthiest man and Globacom BOD Chiairman is interested in acquiring etisalat. Etisalat is currently in very serious debt, the kind of debt that would have resulted in a complete takeover by major creditors had the CBN and NCC not stepped in on time. The back-breaking effect of the huge loan is evident in the inability of the network to expand its base and also offer cheaper data and voice services.
But the question to ask is… Why Globacom?
Well, Mike Adenuga is the chairman of Glo, the second richest man in Nigeria and according to Forbes, he is worth $10 billion. His mobile telecoms company Globacom may be the worst performing mobile telecoms company in Nigeria, but it has the second largest subscriber base, and holds the title – “Grandmasters of data”. Acquiring the assets of Etisalat will help boosts the services of Glo, and possibly a transfer of Etisalats 18milliom subscribers into Glo.
This could go a long way in cementing Glo’s ambition of being number one mobile network in Nigeria. Etisalat is losing subscribers very quickly, subscribers who are moving off to other networks. In the last 10 months, the company’s representatives have confirmed a total loss of almost 3 million subscribers.
Etisalat’s toprepresentatives have denied any knowledge of such gist anyway. The Vice President for Regulatory Affairs at Etisalat, Mr. Ibrahim Dikko has insisted that he doesn’t know of any bids made by Glo, but looking at the fact that news of Etisalat’s distresses have gone round, bidders would surely come. But he said that Etisalat was negotiating with its creditors to review the loan agreement of 2013.
Right now, I don’t know what to say… I don’t know if this is going to be good or bad for us. I just hope Etisalat resolves their issues soon enough. What do you think?
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