Watch your step: These 3 habits are startup-killers

Having the willpower to start a business from scratch and build it into something valuable is no easy task. This is attested to by the less than 2% of startups that eventually become viable companies. The remaining 98% get blown by the wayside. What makes the difference though, between those that succeed and those that don’t? These are 3 habits that entrepreneurs have observed to be startup killers

Parallel entrepreneurship

This is when an entrepreneur decides to work on more than one startup at a time- as if the resources required to handle one startup are not draining enough. If an entrepreneur tries more than one startup at once, then his resources are going to be split and may end up losing at both ends. It is important to be focused and dedicate your all to one startup at a time if it is to have any chance of success.

“Startups are an all-consuming thing.  It’s hard to split time and passion across multiple ones.  Startups are hard enough as it is, but balancing two at the same time is almost always a bad idea”- Dharmesh Shah, Founder and CTO, HubSpot

“You have to be completely dedicated to your business. I’ve made the mistake in a past company of not being 100% focusaed and you don’t get where you need to be very fast. When you take on too much, you feel like you’re mitigating risk but in fact you’re just setting your business up to fail.”- Hannah Chaplin, CEO at Receptive.io

A money-centric attitude

It’s obvious that any startup that’s not going to make money for its founder could as well stay in the bin. However, if how to make so much money is all that’s on your mind as an entrepreneur, then there’s likely to be problems. First, it’s very likely, you are not patient enough to work things out properly. Secondly, you are likely to get greedy and shun smart decisions. For example, instead of finding a co-founder with other brilliant ideas, you may decide to stay on your own and keep the profits all to yourself.

“The biggest mistake entrepreneurs make is the biggest mistake people make when looking for a spouse. Don’t think about money. Fall in love.”- James Altucher

 “Potential biggest mistake was…not finding a complementary co-founder, believing I didn’t need anyone and being a bit greedy about giving up any equity of my “next Facebook of XYZ” idea”- Mike Karmindro, Founder, TraderMob.com

Letting passion rule

This is almost at the other end from the previous point. While it is necessary to let passion fuel your drive and determination, it is also important to let common sense play its part. Know when to shift gears, when to turn around and when to stop altogether. If not, the likelihood of having a failed startup on your hands will be greater.

“The thing is when you start developing a product you have a vision in mind how people are going to use it based on assumptions. Most of them will be wrong. Your product will pivot, so should your vision, too.”- David Pichsenmeister, Co-Founder of Oratio

“Nearly all entrepreneurs will make huge mistakes whenever our passion/zeal outweighs or overshadows or overpowers our ability to slow down and carefully and rationally analyze what is happening and reorienting as necessary.”- Wade Myers, Serial Inc. 5000 entrepreneur.

Please follow and like us:

Extension of Deadline on Issuance of Dividend Warrants and Free e-Dividend Registration Exercise

Following numerous requests received from the investing public, the Securities and Exchange Commission is pleased to announce that the deadline of June 30, 2017 for discontinuance of  issuance of physical dividend warrants has been extended to December 31, 2017.  This will mark the end of conventional issue of physical dividend warrants to shareholders of public companies in the Nigerian capital market.

Furthermore, in a bid to curb the growth of unclaimed dividend in the capital market, the Commission will continue to underwrite the cost of e-Dividend enrollment till December 31, 2017.

So far, about 2,200,000 (Two Million, Two Hundred Thousand) investors have mandated their accounts through the e-dividend platform.

The advantage of the e-Dividend is not only to enable investors collect subsequent dividends electronically but it allows all accrued dividends to be credited to investors’ bank accounts. This will stem the rising unclaimed dividend in the capital market.

This decision underscores the Commission’s strong focus on market development and enhancement of investor confidence. All investors in the Nigerian Capital Market are therefore advised to take advantage of this extended grace period by approaching their Bankers or Registrars for enrolment before the deadline.

Signed

Management

 

Please follow and like us:

Likely effect of an Etisalat solvency on the profits of these banks

Summary:

  • An equivalent of 49% of the profits made by Fidelity Bank in 2016 could be lost
  • Access Bank could lose an equivalent of 30% of profits made in 2016
  • UBA could lose 20% of profits made in 2016
  • GT Bank could lose 12% of Profits made in 2016

Etisalat Group (Not Rated) issued a press release yesterday saying that Nigerian associate, Emerging Markets Telecommunication Services (Etisalat Nigeria; Not Rated) received a security enforcement notice on June 9, requesting for EMTS Holding BV (a special purpose vehicle through which Etisalat Group holds its interest in Etisalat Nigeria) to transfer its Etisalat Nigeria stake to United Capital Trustees Limited, the legal representative of the consortium of exposed banks. Etisalat Group owns 45% ordinary shares and 25% preference shares in Etisalat Nigeria.

Etisalat Nigeria, Nigeria’s fourth largest telecoms operator with over 21 million subscribers, is indebted to 13 Nigerian banks to the tune of US$1.2bn. The facility was availed Etisalat Nigeria in 2013 and was u sed to refinance an existing US$650m loan and fund the upgrade of its network.

Etisalat Nigeria began to experience cash flow problems following the steep depreciation of the naira and the impact on its foreign currency denominated exposure. The telecoms provider also has a few inputs denominated in dollars resulting in bloated expenses.

There have been talks with the lenders where various options have been considered. While Etisalat Nigeria was requesting for another loan restructuring (we understand that the loan had been previously restructured), the banks were requesting that Etisalat Nigeria convert an existing shareholder loan (quantum undisclosed but larger than the total exposure to the banks) to equity and inject more equity into the business in order to reduce the company’s leverage before another restructuring can be done.

From our discussions with managements of the exposed banks, we understand the exposure is over 90% collaterised and, for most of them, the exposure as at Q1 2017 was still classified as performing. Accordingly, no charge had been taken on the loan as at the last reporting date.

How the lending consortium will proceed with the company’s management is still unknown. There are however several options available to the banks in our view: i) replace management; ii) leave current management in place while ensuring better oversight; and iii) the last option we see, is for the consortium to sell the Etisalat Nigeria stake through either a third-party sale or management buyout.

Whichever option the banks decide to go with, we believe that they will do all it takes to ensure the company remains a going concern. Even in the event of a possible liquidation (which appears very much unlikely), the banks will still recover a reasonable percentage of their exposure, given their senior debt holdings.

 

http://i.imgur.com/e82Cw6u.jpg

We note however that a major stakeholder in all of these discussions is the Nigerian Communications Commission (NCC). According to the Nigerian Communications Act (NCA), Etisalats operating licence cannot be transferred to a new owner without an approval from the NCC. Based on media reports so far, it appears the regulator would not want a takeover by the banks given the possibility of a major disruption if this happens. We believe the discussions may drag for a while before any action can be taken by the banks and in the process, there may be a need for the banks to take a haircut, albeit marginally.

Impact on COR if 50% of the exposure is lost

Considering the availability of adequate collateral and the current viability of the business, we do not see a possibility where 100% of the exposure will be lost. Leaning towards pessimism, we look at the impact on covered banks Cost of Risk (COR) if 50% of the exposure of each bank is lost. If this happens, we would see an increase in the COR of the banks we cover by about 0.6% to 1.4% with Guaranty Trust Bank showing the highest increase in COR (based on available data).

Looking at the impact on estimated profits for 2017e, in the worst case, we could see 49% erosion of Fidelity Bank’s Pre-tax Profits if 50% of its exposure is lost.

http://i.imgur.com/f0v2gmk.jpg

We note that the total Etisalat Nigeria exposure makes up only c.3% of gross loans of the 10 banks we cover. That said, we do not consider even a 100% loan loss a major disaster for the banks.

Please follow and like us:

Etisalat Nigeria taken over by Access Bank, others

One of Nigeria’s telecommunication companies, Etisalat has now been taken over by ten major Nigerian lenders.

The lenders include, Zenith Bank, GT Bank, First Bank, UBA, Fidelity Bank, Access Bank, Ecobank, FCMB, Stanbic IBTC Bank and Union Bank.

The take-over came as a result of a futile effort by Emerging Markets Telecommunications Services, EMTS, promoted by-one time Chairman, United Bank for Africa, UBA, Hakeem Bello-Osagie, to reach agreement with the banks on debt restructuring plan in the protracted $1.72 billion (about N541.8 billion) debt impasse.

However, EMTS Holding BV, established in the Netherlands, has up to June 23 to complete the transfer of 100 percent of the company’s shares in Etisalat to the United Capital Trustees Limited, the legal representative of the consortium of banks.

Etisalat Group, the parent company of Etisalat Nigeria, announced the takeover on Tuesday in a letter filed to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate.

 A letter dated June 2017, with No. Ho/GCFO/152/85 signed by Etisalat Group Chief Financial Officer, Serkan Okandan, noted that efforts by EMTS to restructure the repayment of the syndicated loan by a consortium of banks to Etisalat Nigeria collapsed.

It added, “Further to our announcement dated 12 February, 2017, Emirates Telecommunications Group Company PJSC, ‘Etisalat Group’[ would like to inform you that Emerging Markets Telecommunications Services Limited ‘EMTS’ (‘the company), established in Nigeria and an associate of Etisalat Group with effective ownership of 45% and 25% ordinary and preference shares respectively, defaulted on a facility agreement with a syndicate of Nigerian banks (‘EMTS Lenders’).

“Accordingly, the Company received a default and security Enforcement Notice on 9 June 2017 requesting EMTS Holding BV (EMTS BV) established in the Netherlands, and through which Etisalat Group holds its interest in the company) requiring EMTS BV to transfer 100% of its shares in the company to the United Capital Trustees Limited (the Security Trustee”) of the EMTS Lenders by 15 June 2017.

“Subsequently the EMTS Lenders extened the deadline for the share transfer to 5.00 pm Lagos time on 23 June 2017,” the filing said.

The Telecommunication company has been under pressure since 2016, following the demand notice for the recovery of a $1.72 billion (about N541.8 billion) loan facility it obtained from a consortium of banks in 2015.

The loan, which involved a foreign-backed guaranty bond, was for the mobile telephone operator to finance a major network rehabilitation and expansion of its operational base in Nigeria.

Unable to meet its debt servicing obligations agreed since 2016, the consortium, prodded by their foreign partners, threatened to take over the company and its assets across the country.

Please follow and like us:

Why exit of Mubadala, Etisalat’s majority shareholder, is not announced yet-Source

An Etisalat Office

The formal announcement of the exit of Mubadala Development Company as the largest shareholder of Etisalat Nigeria Limited and a new ownership structure is being delayed to allow investment, debt and regulatory issues to be resolved, those briefed about the talks have said.

The exit of the United Arab Emirates, UAE, investor from Nigeria’s fourth largest telecommunication firm, which was reported exclusively last week by PREMIUM TIMES, is yet to be officially confirmed either by Mubadala, Etisalat or the regulator, the Nigerian Communications Commission.

Despite repeated contacts with both companies and the NCC, none has formally confirmed the development, which has already signaled more trouble for the debt-plagued Nigerian telecom firm.

The spokesperson for the NCC, Tony Ojobo, insisted the commission was yet to be formally informed of the withdrawal of Mubadala.

But he said whatever the outcome, all parties involved would have to meet first to resolve all the issues, to know how to move forward.

“Whatever statement will be made will be based on the discussions and agreement reached. This cannot be concluded earlier than early next week (this week),” Mr. Ojobo said.

He said there were certain critical issues that need to be settled before the announcement could be made public.

“The issue involves two regulating authorities in the Nigerian economy – the NCC and the financial sector regulator, the Central Bank of Nigeria, CBN,” Mr. Ojobo told PREMIUM TIMES on Friday in a telephone chat in Abuja.

“The issue at stake has to do an operating license issued to a telecom mobile operator, which had terms and conditions attached to the award. Again, there is the issue of the debt, which brought an agreement between CBN, the banks and Etisalat,” Mr. Ojobo explained.

Although Etisalat management was also cautious not to be seen to have confirmed the exit of its majority shareholder, it however acknowledged PREMIUM TIMES report, saying its immediate focus was to reach a final resolution on the debt crisis with consortium of banks.

Its vice President, Regulatory & Corporate Affairs, Ibrahim Dikko, in a statement said the reported exit of Mubadala was premature to accept, as discussions were ongoing to affirm that as a conclusive option.

“Etisalat Nigeria considers it pertinent to state that parties to the negotiations are considering a number of options, and discussions are at an advanced stage regarding the syndicated loan agreement with the banks.

“We are considering a number of options and are not taking anything off the table at this time. Parties are keen to ensure that the ongoing discussions and eventual outcome do not affect the day to day operations of the business, whether now or after the announcement of our agreement,” Mr. Dikko said.

Financial crisis

Etisalat Nigeria has been in the eye of the storm following a financial crisis in the wake of pressure on it by a consortium of some foreign and Nigerian banks, led by Access Bank, to recover a $1.72 billion (about N541.8 billion) loan facility the company obtained in 2015.

The loan, which involved a foreign-backed guaranty bond, was for Etisalat to finance a major network rehabilitation and expansion of its operational base in Nigeria.

Its inability to meet its debt servicing obligation agreed since 2016 compelled the consortium of banks, prodded by their foreign partners, to take up the matter with the NCC.

When engagements involving the NCC failed to yield an amicable settlement, the telecom sector regulator invited the intervention of the CBN, its financial sector counterpart.

The intervention of the two regulatory authorities persuaded the banks to suspend their decision to take over Etisalat Nigeria, giving it an opportunity to renegotiate and reschedule the loan repayment date.

Mubadala, which controls 70 per cent stake in Etisalat along with its affiliate, Etisalat UAE mobile, was at the head of the renegotiation process.

But, following the rejection of the proposed May 31 repayment date, the banks issued a default note to Etisalat, which forms part of the ongoing negotiations.

New ownership

With the imminent departure of Mubadala, Etisalat Nigeria would be left in the control of Emerging Markets Telecommunications Services (EMTS, promoted by Hakeem Bello-Osagie, which controls 30 per cent of the shareholding of the company.

To allow for a new ownership structure for company, it was learnt that the board of Etisalat Nigeria would have to be dissolved, with the creditor banks effectively taking control through a holding company they would present for NCC’s approval.

Already, the banks are said to be looking towards U.K. for a possible replacement to Mubadala at the end of negotiations.

Multiple sources familiar with the crisis said even the banks understand the importance of Mubadala being around to be part of the negotiations.

“The consortium of banks know if Mubadala is allowed to make its exit from Etisalat public at this point, they will lose the operational license. The license issued to Etisalat to operate a mobile telephone system was on the strength of Mubadala’s involvement as a major shareholder,” one of the sources said.

Aware of the damaging impact any information about Mubadala’s exit could have on ongoing negotiations on the debt issue, the source said the banks have joined in prevailing on the UAE investor to delay a little further the public announcement of its imminent departure from Nigeria.

One of the sources who requested that his name should not be revealed, as he was not authorised to speak on the issue, said Mubadala, which is equally scaling down its investments in other locations around the world, agreed to play along.

“The company believes it has since recouped its investment in Nigeria and has nothing to lose doing the bidding of the banks and Etisalat,” another source said.

But, PREMIUM TIMES learnt the Nigerian government was also concerned about the possible backlash of Mubadala’s exit on the worsening economy and was doing everything to patch up things to make Etisalat stay afloat.

“Everybody is cautious about the investment. Government’s greatest concern is that allowing Etisalat to go under at this time will not only worsen the unemployment situation, but will give Nigeria a bad name, as an unstable business destination. That is why all the parties, including the CBN and NCC, are doing everything to manage the information about Mubadala’s departure till after the negotiations,” the source added.

Etisalat’s background

Etisalat, which commenced business in Nigeria in 2009, acquired the unified access license, including a mobile license and spectrum in the GSM 1800 and 900 MHZ bands from the NCC in January 2007.

The company is rated by the NCC as Nigeria’s fourth largest telecoms operator, with about 21 million subscribers or about 12.9 per cent of the telecom market share as at January 2017.

MTN takes the lead with 60 million, or 40 per cent market share; Globacom, 37million, or 24.6 per cent; and Airtel 34.6 million, or 22.8 per cent.

Please follow and like us:

N541 billion Debt: Access Bank, others take over Etisalat Nigeria

Bassey Udo

A consortium of banks, led by Access Bank PLC and other Nigerian and foreign banks, has taken over the management of Etisalat Nigeria, effective June 15.

The takeover followed the collapse of the effort by Emerging Markets Telecommunications Services, EMTS, promoted by-one time Chairman, United Bank for Africa, UBA, Hakeem Bello-Osagie, to reach agreement with the banks on debt restructuring plan in the protracted $1.72 billion (about N541.8 billion) debt impasse.

However, EMTS Holding BV, established in the Netherlands, has up to June 23 to complete the transfer of 100 percent of the company’s shares in Etisalat to the United Capital Trustees Limited, the legal representative of the consortium of banks.

Etisalat Group, the parent company of Etisalat Nigeria, announced the takeover on Tuesday in a filing to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate.

The filing, with reference number Ho/GCFO/152/85, and dated June 20, 2017 signed by Etisalat Group Chief Financial Officber, Serkan Okandan, said efforts by EMTS to restructure the repayment of the syndicated loan by a consortium of banks to Etisalat Nigeria collapsed.

“Further to our announcement dated 12 February, 2017, Emirates Telecommunications Group Company PJSC, “Etisalat Group” would like to inform you that Emerging Markets Telecommunications Services Limited “EMTS” (“the company), established in Nigeria and an associate of Etisalat Group with effective ownership of 45% and 25% ordinary and preference shares respectively, defaulted on a facility agreement with a syndicate of Nigerian banks (“EMTS Lenders”).

“Subsequently, discussions between EMTS and the EMTS Lenders did not produce an agreement on a debt restructuring plan.

“Accordingly, the Company received a default and security Enforcement Notice on 9 June 2017 requesting EMTS Holding BV (EMTS BV) established in the Netherlands, and through which Etisalat Group holds its interest in the company) requiring EMTS BV to transfer 100% of its shares in the company to the United Capital Trustees Limited (the Security Trustee”) of the EMTS Lenders by 15 June 2017.

“Subsequently the EMTS Lenders extended the deadline for the share transfer to 5.00 pm Lagos time on 23 June 2017,” the filing said.

Etisalat has been under pressure since 2016, following the demand notice for the recovery of a $1.72 billion (about N541.8 billion) loan facility it obtained from a consortium of banks in 2015.

The loan, which involved a foreign-backed guaranty bond, was for the mobile telephone operator to finance a major network rehabilitation and expansion of its operational base in Nigeria.

Unable to meet its debt servicing obligations agreed since 2016, the consortium, prodded by their foreign partners, threatened to take over the company and its assets across the country.

But the intervention of the telecom sector regulator, Nigerian Communications Commission, NCC, and its financial sector counterpart, the Central Bank of Nigeria, CBN, persuaded the banks to rethink their threat and give Etisalat a chance to renegotiate the loan’s repayment schedule.

Late last week, PREMIUM TIMES reported exclusively that Etisalat was sinking deeper into trouble, with Mubadala, its majority shareholder, representing Etisalat of UAE, on the verge of pulling out following irreconcilable differences concerning the loan issue.

 

Source: Premium Times

Please follow and like us:

Evans The Kidnapper’s Wife Speaks On Husband’s Arrest, Pleads For Mercy

Uchenna Precious Onwuamadike, wife of Nigeria’s Kidnap kingpin, Chikwudubem Onwuamadike alias Evans, has begged Nigerians to have mercy on her and their children.

Vanguard reports that the 31-year-old Uchenna who phoned in from Ghana revealed she got married to him at the age of 17 in 2004 and that their marriage is blessed with 5 children.

She denied knowledge of the career her husband had chosen for himself that she always thought Evans was into buying and selling.

Read her narration below;

‘I am not aware that he was into crime. All I know about his business is that he was into haulage, buying engine and spare parts for trucks and imports exhaust pipes. That was what he told me.

I pressured him to find something for me to do and he promised to do that. Several times, I asked him to take me to his office but he said they move from place to place to offload goods in haulage business and share profits. .

I was always indoors because he warned me to beware of Lagos women that they are wayward. When I heard all the allegations against him after his arrest, I was confused until I opened websites.

I collapsed and later called my kids to inform them what I just read about their father. Since then, I have not eaten, I am still in shock. Our children could not believe what they were reading about their father. .

In fact, while we were in Nigeria, he had never slept outside our house. My children were crying when they saw his bloody eyes and swollen face.

I am not aware that he has five girlfriends. As his wife, I should have seen the signs but I have not.

He has colon cancer and does not drink alcohol nor smoke anything. He has never told me he has another house at Igando. He reads psalm 23 a lot.

Even his phone, he sets alarm for 12 noon to read psalm 23. He used to lead us in prayers. I am appealing to the powers that be to spare his life. Have mercy on us. God knows I will not be alive and see my husband doing bad thing and keep quiet.

I am appealing to the powers that be to spare his life (crying), as I speak now, I am kneeling down with my children, crying and begging for forgiveness. Have mercy on us. He did not know what he was doing. He did not know what came over him. I am ready to come back to Nigeria and plead on his behalf. What I am reading in the news is shocking.

[PHOTOS] Meet The Wife And Children Of Notorious Kidnapper, Evans

All his wealth should be sold off and given to his victims. I will also like to see the Governor of Lagos state and explain the whole thing to him.

They said he is rich but I have only N13, 000 in my Diamond bank account. He does not give me money. He told me he will be paying N40, 000 into my account every month but after two months, he stopped, claiming that he was penniless.

Please follow and like us:

Kidnap Kingpin, Evans, Leads Police To Detention Camps

The notorious billionaire kidnapper, Chukwudi Dumeme Onuamadike aka Evans has taken policemen to his infamous detention camp where victims are hidden from the public.
Lagos-based kidnap kingpin, Chukwudi Dumeme Onuamadike, a.k.a Evans, has led a team of Policemen from the Federal Anti-kidnapping Unit to what used to be his detention camps for people he abducted, according to Channelstv.
The separate buildings, located in Igando and Ikotun in Lagos, are usually where the kidnap victims are kept for days or months while negotiation for ransom are made.
The report revealed that Evans told journalists that his arrest signals the beginning of the end of kidnapping in Nigeria, claiming that his gang applied the best sophistication ever which no gang may be able to equal.
Evans was arrested on June 10, along with six suspected top members of his gang at Magodo Estate in Lagos after “an intense gun battle” with the Joint Special Forces led by the Intelligence Response Team, the Lagos State Police Command’s Anti-Kidnapping Unit and Technical and Intelligent Unit of the Force under the supervision of the Commissioner of Police, Lagos State.
They were paraded at the headquarters of the Lagos State Police Command by the Force Public Relations Officer, CSP Jimoh Moshood.
Police sources said the 36-year-old suspect, who had been on their watch-list for about seven years, is reputed to be the most notorious and richest kidnapper in Nigeria.
He is believed to have received millions of dollars in ransom payment.
According to the police, he has two mansions in Magodo GRA Phase 2 worth about N300m and two houses in the Highbrow area of Accra City in Ghana among many other properties such as exotic cars, expensive watches, and jewellery, among other things.
Source: Tori
Please follow and like us:

Iran fires missiles at militant groups in eastern Syria

Iran fired missiles on Sunday into eastern Syria, aiming at the bases of militant groups it holds responsible for attacks in Tehran which left 18 dead last week, Iran’s Tasnim news agency reported.

Tasnim reported that Iranian Revolutionary Guards launched the mid-range ground-to-ground missiles from western Iran into the Deir al Zour region of eastern Syria, killing a “large number” of terrorists and destroying their equipment and weapons.

The news agency reported that missiles targeted the “headquarters and gathering centres of Takfiri terrorists supporting and building car bombs”.

Reuters could not independently verify the report.

Military leaders and officials in Iran, a predominantly Shi’ite country, often refer to Sunni Muslim radicals as Takfiris.

The Revolutionary Guards are fighting in Syria against militant groups who oppose President Bashar al-Assad.

The attack last week, which included shootings and at least one suicide bombing, was on Iran’s parliament and the shrine of Ayatollah Khomeini, the founder of the Islamic Republic.

“The spilling of any pure blood will not go unanswered,” the Revolutionary Guards said in the statement quoted by Tasnim.

Islamic State issued a statement claiming responsibility for the Tehran attack.

Senior Iranian officials, however, have pointed a finger at Saudi Arabia, Iran’s Sunni regional rival.

Please follow and like us:

Enjoy this blog? Please spread the word :)