Access Bank Takes Over Management of Etisalat NG Over N541 Billion Debt | Techpaded Blog

Access Bank Takes Over Management of Etisalat NG Over N541 Billion Debt

A number of banks (Zenith Bank, GT Bank, First Bank, UBA, Fidelity Bank, Access Bank, Ecobank, FCMB, Stanbic IBTC Bank and Union Bank), led by Access Bank PLC and other Nigerian and foreign banks, has taken over the management of Etisalat Nigeria, with effect since June 15, for inability to pay up N541 billion debt.
Access Bank Takes Over Management of Etisalat NG Over N541 Billion Debt

The takeover came as a result of the unsucessful 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 prolonged $1.72 billion (about N541.8 billion) debt.

However, June 23 is the deadline for EMTS Holding BV 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, which is the parent company of Etisalat Nigeria, announced the shift in management on Tuesday in a filing dated June 20, 2017, to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate. With reference number Ho/GCFO/152/85, the filling 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”).
- he added.

“On June 9 2017, the Company accordingly received a default and security Enforcement Notice, 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.

Since 2016, Etisalat has been under pressure 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.

Unfortunately, the consortium (prodded by their foreign partners) threatened to take over the company and its assets across the country for inability to meet its debt servicing obligations agreed since 2016. But the intervention Nigerian Communications Commission (NCC), and its financial sector counterpart, the Central Bank of Nigeria (CBN), persuaded the banks to reassess their threat and give Etisalat a chance to renegotiate the loan’s repayment schedule.

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5 Responses to "Access Bank Takes Over Management of Etisalat NG Over N541 Billion Debt"

  1. This is bad for etisalat.

    ReplyDelete
  2. recession in the land. Etisalat- the biggest victim

    ReplyDelete
  3. etisalat oil brothers in UAE should help out na

    ReplyDelete

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