Orange and Vodafone mooted as potential buyers for Etisalat Nigeria

Orange and Vodafone mooted as potential buyers for Etisalat Nigeria

Orange and Vodafone Group are reportedly among the parties interested in acquiring a 65% stake in Etisalat Nigeria after Etisalat Group withdrew its backing from the unit.

Local sources have claimed that “no fewer than five” firms have already expressed an interest in obtaining some or all of the holding, with Orange and Vodafone having shown “concrete interest” in an acquisition.

However, any deal would face a major stumbling block in the form of Etisalat Nigeria’s debt. After the Nigerian unit defaulted on loan repayments, Etisalat was obliged to transfer its holding in Etisalat Nigeria to a loan trustee. Any buyer would need to reach a solution for restructuring this debt.

A full rebrand would be a probably first step for any acquisition, with negotiators acting on behalf of Etisalat Nigeria – including agents of its banking partners and regulators – seeking to “mitigate any collateral damage and brand erosion” that could deter potential buyers. The Etisalat brand would likely be dropped in any eventuality.

Following on from Etisalat yielding its holding in Etisalat Nigeria, fellow investor Mubadala withdrew its support for the operator, meaning that its only remaining investors are its local partners.

MORE ARTICLES YOU MAY BE INTERESTED IN...


Sign-up to our weekly newsletter

Keep up-to-date with all the latest news, articles, event and product updates posted on Developing Telecoms.
Subscribe to our FREE weekly email newsletters for the latest telecom info in developing and emerging markets globally.
Sending occasional e-mail from 3rd parties about industry white papers, online and live events relevant to subscribers helps us fund this website and free weekly newsletter. We never sell your personal data. Click here to view our privacy policy.