A consortium of banks which is lead by the “Access Bank PLC” and some other Nigerian and foreign banks has taken over entire management of the Etisalat Nigeria. Etisalat Nigeria owed a debt amount of around N541 bn to all these banks. Access Bank and Others Take Over Etisalat Nigeria Over N541 Billion Debt. This move will be effective from 15th June, 2017.
Access Bank and Others Take Over Etisalat Nigeria Over N541 Billion Debt
This take-over was followed due to the collapse of efforts by the Emerging Markets Telecommunications Services, EMTS, promoted by-one time Chairman, United Bank for Africa, UBA to reach agreement with the banks on debt restructuring plan in the protracted $1.72 billion debt impasse.
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.
Etisalat Nigeria owed a debt amount of around N541 billion to Access Bank, Nigerian and foreign banks
As per the announcement:
Emirates Telecommunications Group Company PJSC, “Etisalat Group” informed that Emerging Markets Telecommunications Services Limited “EMTS”, established in Nigeria and an associate of Etisalat Group with effective ownership of 45% and 25% ordinary and preference shares respectively is being defaulted on a facility agreement with a syndicate of Nigerian banks (EMTS Lenders). And as the Lenders didn’t able to work as per the agreement and neither returned the amount hence, the company will be take over by the relevant banks on 15th June, 2017.
Etisalat was under pressure since 2016 due to returning this amount, follow the demand notice for the recovery of a $1.72 billion (about N541.8 billion) loan facility it obtained from these banks in 2015.
Etisalat Nigeria was unable to meet its debt servicing obligations agreed since 2016 due to its declining services in the country. Also last last week, PREMIUM TIMES reported exclusively that:
“Etisalat was sinking deeper into more trouble, as Mubadala, its majority shareholder, representing Etisalat of UAE, was on the verge of pulling out following irreconcilable differences concerning the loan issue.”
It is also important to note that Etisalat Group’s deal of PTCL in Pakistan has also put it in trouble with the Government of Pakistan. The Senate Standing Committee on Information and Technology and Telecommunication has asked many times the Etisalat Group to return the amount of $800 million which was part of the deal of PTCL privatization agreement back in 2006.
Source: Premium Times, AllAfrica