Stella Dimoko Korkus.com: Access Bank,Others Take Over Etisalat Nigeria Over N541 Billion Debt

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Wednesday, 21 June 2017

Access Bank,Others Take Over Etisalat Nigeria Over N541 Billion Debt

A consortium of banks, led by Access Bank PLC and other Nigerian and foreign banks, has taken over the management of Etisalat Nigeria, effective June 15.



The takeover followed the collapse of the effort 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.

However, 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 to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate.

The filing, with reference number Ho/GCFO/152/85, and dated June 20, 2017 signed by Etisalat Group Chief Financial Officber, 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”).

“Subsequently, discussions between EMTS and the EMTS Lenders did not 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.

“Subsequently the EMTS Lenders extended the deadline for the share transfer to 5.00 pm Lagos time on 23 June 2017,” the filing said.

The company added, “The carrying values of this shares in Etisalat Group’s books is nil. The remaining financial exposure from the company is related to operational services (such as international roaming) provided by Etisalat Group to EMTS, and management, technical and IP related agreements and is limited to an amount of AED 191 million as at 31 March 2017.

“The management, technical and IP related agreements between Etisalat Group and EMTS, which includes an agreement to use the Etisalat brand, which are the subject of ongoing discussions with EMTS and the EMTS lenders.”

Etisalat Nigeria has been under pressure since 2016, following 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.

The loan, which involved a foreign-backed guaranty bond, was for the mobile telephone operator to finance a major network rehabilitation and expansion of its operational base in Nigeria.

Unable to meet its debt servicing obligations agreed since 2016, the consortium, prodded by their foreign partners, threatened to take over the company and its assets across the country.

But the intervention of the telecom sector regulator, Nigerian Communications Commission, NCC, and its financial sector counterpart, the Central Bank of Nigeria, CBN, persuaded the banks to rethink their threat and give Etisalat a chance to renegotiate the loan’s repayment schedule.

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*I hope the Staff will not be affected?


15 comments:

Cynhams Cakes, Abuja. said...

That's alot of money.

DopeMoM said...

Kikikikikiki....

Esther Mgbolu said...

Gbege...

Blackberry said...

My network ooo

Chike TEFLON said...

Ehya!!! Pele to Etisalat.

Too much promo cause am...

Lilly simple said...

Awwwwwwww

Yori Yori Princess Loveme Jeje said...

Stella which kind question you dey ask self.

Where have you seen take over and nobody is affected. The staff will be affected. Majority will be sacked and Access Bank will bring in their own persons. What a pity. Make i port to my airtel

GALORE said...

Eya... I hate it when a business don't strive. .it can be so frustrating...

To do business for NIGERIA, no be moi moi... They can render an investor Deficit



@Galore

GALORE said...

Lol.. Na @Banky W and @Genevieve chop their money for advert fee...



@Galore

Miss Ess said...

Too bad

Anonymous said...

As a result of trying to see to it that infrastructure is top notch and the network accommodate every subscriber, without crappy data speed and calls being terminated midway, this is where we found ourselves.
I'll keep praying for Etisalat, cos they take good care of their staff and treat their customers as kings.
Amidst all these negativity, my 15k credit has not been reduced, I still get my quarterly bonus and overtime, and there's still medical for myself, husband and up to 4 children, and paid leave.
And I'm a contract staff.
It shall end in praise.
Olowo gbogboro visit Etisalat.

Anonymous said...

It's not like they cannot pay a substantial part of the debt. If they decide to take that route, we the staff will cry blood.
Imagine someone of a certain rank is earning about 290k, and your quarterly bonus, which depends on your performance appraisal, will be more than 300k.
That are considering the effect on staff which is why we still have our incentives.
Pray with us.
It's the dollar hike that caused this, cos we have to payback in dollars.

Yemi7up said...

Hmmmmmmmm another job lost looming. I pray they resolve it.

Welcome to my World said...

Hope they will consider the staffs, already too many people have lost their jobs due to recession in Nigeria

AGELESS T said...

Now this touched me. Amen to your prayers.

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