LG Electronics Inc. (LG) today announced fourth quarter 2011 consolidated revenues of KRW 13.81 trillion (USD 12.05 billion) with an operating profit of around US$20 million. Quarter-on-quarter revenue growth reflected strong performance in home entertainment and home appliances with improved operating profit in the mobile and TV businesses.

Unaudited consolidated financial results for the period ending December 31, 2011, showed a net loss of KRW 112 billion in the quarter, primarily due to a loss on investments in affiliated companies and net financial expense.

Full-year 2011 consolidated revenues reached KRW 54.26 trillion. Despite a 2011 net loss of KRW 433 billion, operating profits improved significantly to KRW 280 billion from KRW 176 billion for full-year 2010.

The LG Mobile Communications Company improved its position in the fourth quarter with operating profits of KRW 12 billion and sales of KRW 2.78 trillion on the strength of premium smartphones such as the Optimus LTE. For full-year 2011, the company posted sales of KRW 11.69 trillion, a decline of 9.9 per cent from 2010.

Etisalat Group announced it has appointed Saleh Al Abdooli as CEO for Etisalat UAE and Saeed Al Hamli as CEO for Etisalat Misr, effective April 2012.

For the past five years Al Abdooli has been CEO of Etisalat Misr.

Al Hamli has worked both inside and outside the UAE, and between 2007 and 2011, he worked as the CEO of Etisalat Afghanistan.

Nasser bin Obood previously held the position of acting CEO of Etisalat UAE.

Etisalat will announce bin Obood’s new leadership role in due course.

Etisalat is reported to be mulling bids to sell its towers network Africa. The telco has subsidiaries in 10 countries and owns around 4,500 towers across the continent.

Citing sources familiar with the matter, Reuters said that Etisalat has invited bids for the tower assets.

The telco had been looking to sell the towers to another management company for around US$500 million, but sources indicated that a block sale of the entire portfolio proved difficult.

The company is now reported to be looking to sell its towers on a per-country basis.

A court in Nigeria has upheld Econet Wireless Limited’s five per cent claim to Airtel Nigeria, a cellco to which it was a founding shareholder in 2001. The court sided with the Zimbabwe operator that its stake had been unfairly cancelled, and any decisions since the cancellation are void.

“All actions and resolutions taken by the company since October 2003 at which Econet Wireless was entitled to be notified, and to participate in, as a shareholder, but was prohibited, are null and void,’ the judgement said. ‘This includes decisions to sell shares, issue shares, and also transfer shares to third parties.”

Econet said the judgement means the cellco’s name would revert to Econet Wireless Nigeria. “We have made it clear to the company, that as a shareholder, we would like to ensure that all actions that must be taken to comply with the court order are undertaken in such a way that there is minimal disruption to the ongoing operations of the company,” commented Econet Wireless Group chairman Strive Masiyiwa. “The board of Econet Wireless and I remain willing to sit down with Bharti Airtel, to review the best way forward for all parties. In the meantime, we have a fiduciary responsibility to take all of the necessary steps to vigorously protect the interests of our shareholders,” he added.

Laughing all the way to the bank – Strive Masiyiwa has his company’s five per cent stake claim to Airtel Nigeria affirmed by court (Image – courtesy of World Economic Forum)

Bharti Airtel has said it will appeal the court’s decision and that the judgement will have no impact on the equity holding of other shareholders in Airtel Nigeria.

The Indian telco inherited the legal case as part of its US$9 billion acquisition of Zain’s Africa operations in June 2010, including 65 per cent of Zain Nigeria.

Econet has always claimed that its five per cent stake in Econet Wireless Nigeria was cancelled following the takeover of the telco by Vodacom in 2003. Econet Wireless Nigeria was subsequently renamed Vee Networks and its brand name changed to Vodacom, but Vodacom pulled out of its contract soon after, citing ‘irregularities’ in the payment of the brokerage fees. Celtel International then purchased 65 per cent of the company in May 2006, a move that was disputed by Econet Wireless Limited, which claimed its pre-emption rights were breached. In 2009 Econet Wireless began moves to block the sale of Celtel’s (Zain) interests in Nigeria to Bharti Airtel until a ruling on the dispute over ownership of the company was passed. However, the takeover by the Indian firm was concluded in June 2010, with Zain Nigeria rebranded under the Airtel moniker by the end of the year.

A clause in the agreement between Bharti Airtel and Zain Group in the acquisition of the latter’s assets in Africa, was that Zain would be liable for any losses that may result from the ongoing litigation by Econet Wireless in Nigeria.

The government of Qatar is reported to have approached Saudi Oger about a deal to buy its 55 per cent stake in Oger Telecom, which owns a controlling 55 per cent stake in Turkey based Turk Telecom.

Oger Telecom also owns a 75 per cent stake in South Africa’s third mobile network, Cell C.

Citing sources familiar with the talks, Reuters said that Qatar – through its sovereign wealth fund – had made a direct approach to Saudi Oger about a deal.

Saudi Telecom Co. (STC) owns a 35 per cent stake in Oger Telecom, and has a right of first refusal if Saudi Oger were to look to sell its 55 per cent stake in the company.

The Qatar government also holds a majority stake in Qtel, although the deal is not thought to be involving the telco at this point.