MIRA INFORM REPORT

 

 

Report Date :

07.05.2013

 

IDENTIFICATION DETAILS

 

Name :

GLOBACOM LIMITED 

 

 

Registered Office :

6, Danmole Street off Idejo Street, Victoria Island, Lagos

 

 

Country :

Nigeria

 

 

Date of Incorporation :

22.01.2002

 

 

Com. Reg. No.:

RC : 439916

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Subject engages in National Telecommunication Operation Services such as: Telephone services, Mobile GSM, Fixed wire and fixed wireless international Gateway, Online Telecommunication services

 

 

No. of Employees :

Over 4,000

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

Payment Behaviour :

No  Complaints

Litigation :

Clear 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Nigeria

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 


 

NIGERIA ECONOMIC OVERVIEW

 

Oil-rich Nigeria has been hobbled by political instability, corruption, inadequate infrastructure, and poor macroeconomic management, but in 2008 began pursuing economic reforms. Nigeria's former military rulers failed to diversify the economy away from its overdependence on the capital-intensive oil sector, which provides 95% of foreign exchange earnings and about 80% of budgetary revenues. Following the signing of an IMF stand-by agreement in August 2000, Nigeria received a debt-restructuring deal from the Paris Club and a $1 billion credit from the IMF, both contingent on economic reforms. Nigeria pulled out of its IMF program in April 2002, after failing to meet spending and exchange rate targets, making it ineligible for additional debt forgiveness from the Paris Club. In November 2005, Abuja won Paris Club approval for a debt-relief deal that eliminated $18 billion of debt in exchange for $12 billion in payments - a total package worth $30 billion of Nigeria's total $37 billion external debt. Since 2008 the government has begun to show the political will to implement the market-oriented reforms urged by the IMF, such as modernizing the banking system, removing subsidies, and resolving regional disputes over the distribution of earnings from the oil industry. GDP rose strongly in 2007-12 because of growth in non-oil sectors and robust global crude oil prices. President JONATHAN has established an economic team that includes experienced and reputable members and has announced plans to increase transparency, diversify economic growth, and improve fiscal management. Lack of infrastructure and slow implementation of reforms are key impediments to growth. The government is working toward developing stronger public-private partnerships for roads, agriculture, and power. Nigeria's financial sector was hurt by the global financial and economic crises, but the Central Bank governor has taken measures to restructure and strengthen the sector to include imposing mandatory higher minimum capital requirements.

 

Source : CIA

 


Company NAME 

 

GLOBACOM LIMITED

 

OPERATIONS

 

The company engages in National Telecommunication Operation Services such as: Telephone services, Mobile GSM, Fixed wire and fixed wireless international Gateway, Online Telecommunication services.

 

 

COMPANY LOCATION

 

The company is located at Mike Adenuga Towers, 2nd Floor, off Adeola Odeku Street, 1, Mike Adenuga Close, Victoria Island, Lagos, Nigeria.

 

 

IDENTIFICATION

 

COMPANY NAME:                                GLOBACOM LIMITED  

REGISTERED NAME:                           GLOBACOM LIMITED                                                      

REGISTERED ADDRESS:                     6, Danmole Street off Idejo Street, Victoria Island, Lagos, Nigeria

CURRENT OPERATIONAL ADD:           143, Ahmadu Bello Way, Victoria Island, Lagos, Nigeria

PREVIOUS HEAD OFFICE:                   25, Saka Tinubu Street, Off Adeola Odeku Street, Victoria

Island, Lagos State, Nigeria

GROUP HEAD OFFICE:                        Mike Adenuga Towers, 2nd Floor, off Adeola Odeku Street,

1, Mike Adenuga Close, Victoria Island, Lagos, Nigeria

POSTAL ADDRESS:                             P.M.B. 80165, Victoria Island, Lagos, Nigeria

TELEPHONE:                                       234-1-2675673-4 (2 Lines) (Inactive)

FAX:                                                     234-1-2627510 (2 Lines)

MOBILE:                                              234- 805-557-1003, 805-002-0121, 805-002-0200

E-MAIL:                                                customercare@gloworld.com, corporatecare@gloworld.com,

cesar.camara@gloworld.com , etopup@gloworld.com

WEBSITE:                                            www.gloworld.com                   

PRIMARY CONTACT:                            Mr. Cesar Camara (Chief Information Officer)

 

Currency: All monetary quoted in this report are in Nigerian Naira, the local currency or unless otherwise stated. The exchange rate is N155 to 1 US $.


SUMMARY

 

NATURE OF PREMISES:                      Owned head office occupying approximately 1,500 square meters.

DATE INCORPORATED:                       22nd January, 2002

YEAR BEGAN OPERATIONS:               29th August, 2003

LEGAL FORM:                                      Limited Liability Company

REGISTRATION NO:                             RC: 439916

SHARE CAPITAL:                                 10,000,000.00   

PAID-UP CAPITAL:                               10,000,000.00

LEGAL ADVISER:                                 Mrs. Gladys O. Talabi

STAFF STRENGHT:                              Over 4,000

 

 

DIRECTORS/SHAREHOLDERS

 

1.     Izegbu Steve                                                            

6, Danmole Street, Off Idejo Street, Victoria Island Lagos State, Nigeria                

 

2.     Ogunbayo Sola

No. 23B, Glover Street, Ikoyi, Lagos State, Nigeria  

 

3.     Mr. Steve Izetbu

6, Danmole Street, Off Idejo Street, Victoria Island Lagos State, Nigeria                

 

4.     Mr. Ike Oraekwuotu

Plot 1092, Adeola Odeku Street, Victoria Island, Lagos State, Nigeria

 

5.     Mr. Owen Tychus

Plot 289, Ajose Adeogun Street, Victoria Island, Lagos State, Nigeria

 

6.     Mrs. Gladys O. Talabi                                                           

62/64, Campbell Street, Lagos Island, Lagos State, Nigeria               

                  

7.     Mr. Festus O. Igbomor

5, Independence Layout, Enugu, Enugu State, Nigeria

 

8.     Mr. Babatunde Akinyera

Plot 289, Ajose Adeogun Street, Victoria Island, Lagos State, Nigeria  

 

9.     Alh. G. Subair

2, Dawaki Road, Kaduna, Kaduna State, Nigeria  

                         

10.  Mike Adenuga

18A, Okoawo Close, Victoria Island, Lagos State, Nigeria

 

11.  Agbolade Michael Adenuga

18A, Okoawo Close, Victoria Island, Lagos State, Nigeria

 

 

BOARD OF DIRECTORS

 

1.     Izegbu Steve

2.     Ogunbayo Sola

3.     Mr. Steve Izetbu

4.     Mr. Ike Oraekwuotu

5.     Mr. Owen Tychus

6.     Mrs. Gladys O. Talabi

7.     Mr. Festus I. Ogbomor

8.     Mr. Babatunde Akinyera

9.     Alh. G. Subair

10.  Mike Adenuga

11.  Agbolade Michael

 

 

MANAGEMENT TEAM

(Based on secondary sources information)

 

S/N

NAMES

POSITION

1.

Dr. Mike Adenuga (Jnr.)

Chairman

2.

Mr. Mike Jibotoh

Executive Director (Special Project)

3.

Mr. Timi Ogunsanwo

Executive Director (Commercial)

4.

Mr. Adewale Sangowawa

Executive Director (Human Resources)

5.

Mr. Jameel Mohammed

Chief Operating Officer

6.

Mrs. G.O. Talabi

Executive Director (Legal)

7.

Mr. Bella Adenuga

Executive Director

8.

Mr. Paddy Adenuga

Executive Director

9.

Mr. Charles Jenarius

Regional Director, West Africa (Marketing Communications)

10.

Mr. Cesar Camara

Chief Information Officer

11.

Mr. Bode Opeseitan

Head (Public Relations)

12.

Mr. Dele Babatunde

Administration

13.

Avneesh Mahajan

National Head Roll Out and Implementation

14.

Manoj Manicketh

Head - Glo1 at Globacom Limited

15.

Ajay Jha

Head VAS at Globacom

16.

Naresh Chandra

CTO at Globacom

 

BACKGROUND

 

Globacom Limited was incorporated in Nigeria on 22nd January, 2002 with Registration Number (RC: 439916). The company engages in National telecommunication Operator (Mobile GSM, Telephone services. Fixed wire and fixed wireless international Gateway, Online Telecommunication services).  The Group corporate head office is located at Mike Adenuga Towers, 2nd Floor, off Adeola  Odeku Street, 1, Mike Adenuga Close, Victoria Island, Lagos, Nigeria. The company occupies the whole seven-storey building owned by the company and among the high rising and beautiful building in the area, it is painted with light brown and egg yellow colour, glasses was used to design some parts of the building. The premise is covered with a long fence and two gates. A big golden calf of horse was placed in front the building. The building consists of different departments and outfits owned by the company.

 

Globacom Limited engages in National Telecommunication Operation Services such as: Mobile GSM, Telephone services, Fixed wire and fixed wireless international Gateway, Online Telecommunication services. Globacom Limited (popularly called GLO) is a Nigerian multinational telecommunications company headquartered in Lagos, Nigeria. GLO is a privately owned telecommunications carrier that started operations on 29 August 2003. It currently operates in four countries in West Africa, namely Nigeria, Republic of Benin, Ghana and Côte d'Ivoire. The company currently has employed more than 2,500 people worldwide.

 

The company is owned by the Mike Adenuga Group and launched in 2002. It is the Second National Telecommunications Operator (SNO) in Nigeria, licensed to provide an array of telecommunications services.  Since Globacom Limited started operations on August 29, 2003, it has become a pacesetter in the telecommunications industry, introducing changes that have afforded Nigerians the benefits of telecommunications and information technology and spurred national development.  Globacom Limited became the first operator in Africa to launch gateway switches outside the continent to carry international voice and data traffic after commissioning its switch in the United Kingdom in September 2004. Although Globacom Limited was the fourth GSM operator to be launched in Nigeria, in the last ten years it has grown to boast of over 26 million subscribers, making them the fastest growing network in Africa. Its existence made the telecoms industry in Nigeria to offer lower tariffs and even more value added services as it is the first company in the region to introduce per second billing which changed the shape of the market completely.

 

When the company was launched in Nigeria in 2003, they had the vision to be the market leading service provider in Nigeria and they also aspire to build Africa’s biggest and best telecommunications network. With over 25 million subscribers, they have realized the dream of being Nigeria’s leading service provider. And through extending their coverage into other African countries like the Republic of Benin, Ghana and the Ivory Coast, they are well on track to achieving their goal of being the biggest and best telecommunications network in Africa.

 

 As a company, Globacom recently made history as the first single company to build an $800 million high-capacity fibre-optic cable, known as Glo-1. It is the first successful submarine cable from the United Kingdom to Nigeria; and it will decrease telecom process and provide excess bandwidth to all the cities connected to the cable. This historical initiative will also improve teleconferencing, distance learning, disaster recovery and telemedicine among several other benefits. As part of giving back to  the communities in which they operate (Corporate Social Responsibilities) the company gave the sum of $1m (one million dollars) to Nigeria Super Eagles for its victory in the just concluded Africa Youth Championship Cup of Nation, it also sponsors the national football teams and the Premier Leagues in Nigeria and Ghana. In 2010, Globacom sponsored the African Handball tournament in Benin Republic as well as the biggest cultural festival (FITHEB) held in the Benin Republic. Globacom has also sponsored the annual Confederation of African Football (CAF) Awards since 2005. They are also the sponsor of the Glo Lagos International Half Marathon.

 

Globacom Limited has a reputation as one of the fastest growing mobile service providers in the world.  It has acquired licenses to operate in some countries such as the Republic of Benin and in Ghana and the Ivory Coast.

 

The company’s team is composed of experienced, reputed and talented management professionals with unyielding commitment to customer service, efficient technical support: constant monitoring of the network performance and call quality, builds strong customer relationship.  Also, it parades dedicated staff of over 4,000 in its organizational structure which is built on a concept of global businesses and designed to allow the company compete most effectively in the highly competitive, ever changing and challenging telecommunication industry.

 

During our visit to the corporate head office address on 2nd May, 2013, we met the Front Desk Officer who refused to disclose any information about the company on hearing our mission. According to her, she could not give any information without due authority from the management but promised to submit our document to the appropriate authority and get back to us in due course but we are yet to receive any response as at the time of compiling this report.

 

Conclusion: Based on available information and our visit to the company, we are of the opinion that the company is well known and actively engaged in legitimate business.  Therefore, we recommend the company for normal business engagement and any business relationship with the company should be mutually beneficial.

 

NOTE: WE ADVISE THAT ANY BUSINESS TRANSACTION WITH THE COMPANY SHOULD BE DIRECTED TO THE GROUP HEAD OFFICE DUE TO THE SECURITY SITUATION IN THE COUNTRY (NIGERIA).

 

 

PRINCIPAL ANTECEDENT

 

Name:                                      Dr. Mike Adeniyi Ishola Adenuga Jr. (CON)

Position:                                  Chairman

Profession:                              Business

Nationality:                               Nigerian

State of Origin:             Ogun State

Place of Birth:                          Ijebu-Igbo, Ogun State

Date of birth:                            29th April, 1954

Education & Qualification:       B.sc and M.sc (Business Administration) - Federal

 

SERVICES

 

·         International Calls & Roaming

·         Promotions

·         Prepaid Packages

·         Blackberry Services

·         High Speed Internet

·         Glo Business Packages

·         Value Added Services

 

RELATED COMPANIES

 

·         Cinet Corporate Solutions Limited

·         Cinet Internet Services Provider Co. Ltd.

·         Conpetrol Limited

·         Cinet GSM Limited

·         Cinet Technical Services Limited

·         Cinet Integrated Online Limited

·         Globacom Services Limited

·         Cinet Wireless Communications Limited

·         Orator GSM Limited

·         Glo Broadaccess

·         Gloo-1

·         Equitorial Trust Bank

·         Equitorial Trust Bank Limited

·         Continental Oil & Gas Limited

·         Glo Mobile

·         Cinet Marketing and Distribution Co. Ltd.

·         Cinet Limited

·         ECL International Limited

·         ConOil Plc

·         ConOil Producing, among others.

 

 

SPONSORSHIP

(SOCIO-CIVIC)

 

·         Eyo Festival, Ojude Oba Festival

·         Eleghe Festival

·         Poverty Alleviation Programmes in partnership with Shell, NDDCC, NAPEP, State

      Government

 

 

SPORT ACTIVITIES

 

·         Super Eagles and Super Falcons

·         National Football Teams

·         Globacom Nigeria Premier League

·         Annual Glo CAF Awards

·         Nigeria Football Association

·         Ghana Premier League

·         Nigerian Football Supporters Club

·         Glo Lagos International Half Marathon

·         Nigeria Football Federation (NFF)

·         Glo People Police Marathon

·         Confederation of African Football African Player of the Year Award

·         GLO sponsors the FITHEB, Benin

·         Glo Ghana Premier League, Ghana

·         Ghana National Football Teams

·         Manchester United

·         The sponsorship also includes young players from Benin, Ghana and Nigeria going to

      Manchester to train with the club

 

BANKER

 

Sterling Bank Plc formerly Equitorial Trust Bank Plc

 

 

SALES OUTLETS AND BRANCH OFFICES

 

ABUJA

Plot 1101, Aminu Kano Crescent, Wuse II, Abuja, FCT, Nigeria (234-805-557-2179)

REPUBLIC OF BENIN OFFICE

Glo Mobile Benin, 817, Parcelle C Quarter, Avenue de la Liberation, Pres Le Poste de Police D’Aidjedo, Cotonou

The company also has various world class sales outlets and branch offices nationwide equipped with state of the art technology and equipments

 

 

TRADE REFERENCES

 

The company has both local and international references

 

 

PAYMENT REFERENCES

 

The company has both local and international references

 

 

MISSION

 

To build Africa’s biggest and best telecommunications network

 

EXPANSION PLANS

 

 

 

TYPES OF CUSTOMERS

 

 

 

PERFORMANCE RANKING

 

* Quality of Management:          EXCELLENT

* Ethics & Integrity:                     VERY GOOD

* Ownership Structure:               VERY GOOD

 

 

PHYSICAL VISIT

 

 

1.     Company Premises 

2.     Corporate Affairs Commission

 

 

FINANCES

 

The company’s Audited Accounts was not available as at the time of compiling this report. However, we advise that the maximum credit limit to be accorded to the company could be put at 500million US dollars ($500m USD). This opinion is as a result of the company’s performance in the telecommunication industry in Nigeria and also, it is among the top major fast growing companies in Africa.

 

 


 

INDUSTRIAL OVERVIEW/ OPERATING ENVIRONMENT

 

The company is operating in an industry with very great potentials. The telecommunication Services sector of the Nigeria economy has a lot to explore when it comes to the need for expansion, improvement of product quality, work force development and general technical expertise. Mainly private individuals dominate this sector. Despite the huge capital required for setting up this investment, it has grown in its leaps and bound over the decades in the nation. Although, the efforts of the Federal Government cannot be ruled out. The Government has put in place different policies that support private individuals to secure loans/ mortgages from banks and other financial institutions. However, to record a groundbreaking record in this sector, foreign investors are inevitable. They facilitate the importation of high-tech equipment, which will boost quality production and efficient communication. 

 

This sector of the economy has great potentials for intending investors.

 

 

CMT REPORT

(Corruption, Money Laundering & Terrorism)

 

Public Notice from various sources including but not limited to: The Courts, Nigerian Prison Service, Economic & Financial Crimes Commission (EFCC), National Drug Law Enforcement Agency (NDLEA), National Agency for Food & Drugs administration and Control (NAFDAC), Independent Corrupt Practices and Other Related Offences Commission (ICPC) Etc.

 

No negative information on subject from the above agencies as at the time of compiling this report.

 

 

OFFICIAL REMARKS

 

Having carried out all necessary verifications on subject, our investigations revealed that Globacom Limited is duly registered in Nigeria, with a Registered Address located at 6, Danmole Street off Idejo Street, Victoria Island, Lagos State, Nigeria, while the corporate office is located at Mike Adenuga Towers, 1, Mike Adenuga Close, Adeola Odeku Street, Victoria Island, Lagos State, Nigeria.

 

Subject is into genuine business transactions.  Subject is an on-going concern. 

 

All information contained in the report is from secondary sources  ONLY.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.95

UK Pound

1

Rs.84.03

Euro

1

Rs.70.72

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

----

NB

New Business

----

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.