Reports at the disposal of vigil 360 indicate that a consortium of banks, led by Access Bank PLC and other foreign banks, has taken over the management of Etisalat Nigeria, effective June 15.
The development is sequel to collapse of the efforts 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.
Consequent upon the above development, 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 letter No. Ho/GCFO/152/85 dated June 20, 2017 submitted to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate.
The filing which was signed by Etisalat Group Chief Financial Officer, 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).
The discussions between EMTS and the EMTS Lenders did not subsequently 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.
The EMTS Lenders extened the deadline for the share transfer to 5.00 pm Lagos time on 23 June 2017, the filing said. Meanwhile inquiries conducted by vigil 360 revealed that Etisalat has been under pressure since 2016.
This followed 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.
However, intervention by the telecoms regulator, Nigerian Communications Commission, (NCC) and its financial sector counterpart, the Central Bank of Nigeria, CBN, succeeded in persuading the banks to rethink their threat and give Etisalat a chance to renegotiate the loan’s repayment schedule.
