Etisalat Nigeria, Nigeria’s fourth largest telecom operator, ran into
trouble with the consortium of banks, led by Access Bank PLC, following its
failure to meet its obligations in respect of a $1.72 billion (about N541.8
billion) loan facility it obtained in 2015.
The loan, which involved a foreign-backed guarantee bond, was for the
mobile telephone operator to finance a major network rehabilitation and
expansion of its operational base in Nigeria.
After the repayment of the loan failed in 2016, the consortium, with the
backing of their foreign partners, threatened to take over the company and its
asset across Nigeria.
The intervention of the NCC and the CBN persuaded the banks to give
Etisalat a chance to renegotiate the loan repayment schedule.But, the company also reneged on the pledge to pay up by May 31,
resulting in a final default note and enforcement notice issued on June 9,
2017.
EMTS has already announced the commencement of the process to unveil a
new shareholding structure and new trading name for the company during the
transition phase.
Etisalat Group, the parent company of Etisalat Nigeria, on Tuesday announced
the changes to Etisalat Nigeria’s shareholding in a letter filed to the Abu
Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate.
UAE’s Etisalat (Etisalat Group), with a 45 per cent stake in the Nigerian
arm, also said it had been ordered to transfer its shares to a loan trustee by June
23, after negotiations failed, Reuters reported. It added it was carrying the
stake at nil value.
The Emerging Markets Telecommunication Services Limited, also known as
Etisalat Nigeria, has up to June 23, 2017 to complete the transfer of
100 per cent of the company’s shares in Etisalat Nigeria to the United Capital
Trustees Limited, the legal representative of the consortium of 13 banks.
While assuring its subscribers that the latest development would not
affect its normal operations and the continued delivery of quality services,
Etisalat Nigeria Vice President, Regulatory & Corporate Affairs, Ibrahim
Dikko, said the company would mobilise its workforce to build a stronger
business.
The NCC has reassured the over 21 million telephone subscribers on the
Etisalat Nigeria network that it is committed to exercising its full regulatory
powers to guarantee stable and quality services by the operator.
“The Commission has taken proactive steps to cushion the impact of the
takeover,” Mr. Ojobo said. “This is without prejudice to the ongoing effort
between Etisalat and the banks toward negotiated settlement.
“In view of the recent development, NCC wishes to reassure all
stakeholders in the telecommunications sector in particular the subscribers on
the Etisalat Network that the Commission will ensure that the integrity of
Etisalat Network is not compromised.”
He also drew the attention of the consortium of banks involved in the
planned takeover of the terms and conditions that guided the award of an
operational license to Etisalat Nigeria, indicating that they would need the
permission of the NCC before the license is assigned or a new operator comes on
board in compliance with the NCC Act 2003.
