Lagos — Vodacom (Pty) South Africa Limited and Econet Wireless Limited yesterday in Lagos signed a five-year Management deal.

Under the new deal, EWN will start trading immediately under the Vodacom brand name.

In a statement jointly signed by Mr. Emeka Oparah, the Corporate Affairs Officer of EWN and Ivan Booth, Vodacom Media Relations Manager, the South African company would be entitled to a fee for managing Econet.

Mr. Willem Swart the CEO appointed by Vodacom for the Nigerian company, has also assumed duties at the Fortune Towers, Victoria Island headquarters.

Under the terms of the agreement, Vodacom is expected to "provide additional support in respect of procurement, network design and rollout products and services, marketing and other group services."

An Econet official who spoke with THISDAY disclosed last night that EWN has already applied to the Corporate Affairs Commission (CAC) in Abuja to effect a change of name, which would be V-Network Ltd, a half way strategy before Econet fully takes the Vodacom identity.

The source also disclosed that after the change of name, there is the likelihood of another change of name much later when all the legal issues involved in the take-over would have been resolved.

According to the source, the logo and corporate colours of the company would also change. "It is a complete identity change," he said.

Sources also told THISDAY that there is a second contract which transfers the powers of the Econet Board to Vodacom so the new manager could have full control.

The statement by the spokesmen of Vodacom and EWN also disclosed that the signing of the Agreement followed extensive due diligence by Vodacom over a 9-month period. "It represents a key step in the process of Vodacom's proposed equity investment into the business of Econet Wireless Nigeria Limited, in terms of which Vodacom will take a controlling stake in this business", Oparah and Booth stated.

Vodacom Deputy Group CEO, Mr. Andrew Mthembu, was reported in the statement as saying that the proposed equity investment process would receive a huge boost from this Agreement.

The companies noted that the transaction to effect the equity investment still requires finalization of the commercial terms and the sanction of the Nigeria courts as well as the Nigerian Communications Commission (NCC) and the Nigerian Secu-rities and Exchange Commis-sion.

Mthembu was also reported as stating that the closure of the equity investment process will take time, and would likely be completed within six to18 month time frame.

According to the statement, Econet Chairman, Mr. Oba Otudeko, says the Agreement will enable Econet Wireless Nigeria to draw from the goodwill and expertise of Vodacom as the leading mobile operator on the continent. It will also boost the Econet network operations and strengthen it to compete more aggressively.

"Vodacom is particularly proud to be making this announcement on the 10th anniversary of the launch of its commercial service on 1 April 1994. Mthembu said that this Agreement marks the start of the second chapter in the growth of the Vodacom Group," the statement further stated.

Vodacom Group (Pty) Ltd incorporates the leading mobile network operators in South Africa, Tanzania, Democratic Republic of the Congo and Lesotho. It has also recently launched service in Mozambique and with over 11 million customers is the largest mobile operator on the African continent.

With the signed deal yesterday, it means that the expected injection of funds into the company by Vodacom has not started to take effect until all legal issues raised by Econet Wireless International (EWI) have been settled. The Econet source who spoke with THISDAY last night however insisted that the management deal is a condition precedent to the main deal.

It also means that Vodacom has finally settled for the EWN deal.

With the deal wrapped, brand names such as Vodago, Vodacom's prepaid package would replace Buddie, which is Econet's prepaid package. Other Vodacom packages such as Corporate package, Talk packages, Business, Leisure and Family would also appear on Nigerian streets.

As at the last count, EWI had filed at least four separate suits over the EWN/Vodacom deal claiming to have been shortchanged by EWN board. EWI, claims that EWN had earlier agreed to give it first preference on equity before searching for and accepting the Vodacom offer. This was apart from taking the matter before the US Foreign Corrupt Practices Act of 1977 and the United Nations Commission on International Trade Law . The suits have had the combined effect of delaying the finalization of the original deal.