Consortium Of Banks Led By Access Bank Takes Over Etisalat Nigeria Over N541 billion Debt

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ETISALAT NIGERIA

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. Premium Times had reported last week that Etisalat was sinking deeper into trouble, with Mubadala, its majority shareholder, representing Etisalat of UAE, on the verge of pulling out following irreconcilable differences concerning the loan issue. To Receive Free News Updates, Add To Your WhatsApp: 08033857245; For Adverts Enquiries, Call 08083609209, To Publish Your Articles Or News Stories, Email editor@skytrendnews.com. READ ALSO! EXCLUSIVE: Armed Robbery Attack At Zenith Bank Southeast Owerri That Killed One (WATCH VIDEO) READ ALSO! 7 Women Lure Two Men Into Their Car, Rape Them Serially Inside A Bush READ ALSO! REVEALED: How Brave Policeman That Shot Dead Armed Robber In Viral Owerri Video Died READ ALSO! Why Celebrity Marriages Will Continue To Crash — Comedian, Bash READ ALSO! Shock As Married Woman Dies In Hotel Room In Enugu With Alleged Lover READ ALSO! Mercy Aigbe Visits UK Hospital For Treatment READ ALSO! OWERRI ROBBERY: Nigerian Police Under Fire For Disparity In Their Claim Versus The Viral CCTV Video READ ALSO! UPDATE: Why Nigerian Soldier Who Killed Suspected Boko Haram Terrorist Was Sentenced To Death Reporting Nigerian Political Economy Perspectives…]]>