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Banks Takeover Etisalat Nigeria Over N541Billion Debt

BellaNaija.com

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Etisalat Nigeria, Banks, TakeoverA group of banks – foreign and local – have taken over the management of Etisalat Nigeria.

In a report by Premium Times, it was stated that the takeover is the result of the inability of the telecommunications firm to repay debts reaching $1.72 billion (about N541.8 billion).

The firm’s parent company, Etisalat Group, announced the takeover on Tuesday in a filing, with reference number Ho/GCFO/152/85, and dated June 20, 2017, to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate.

The filing was reportedly signed by Etisalat Group Chief Financial Officer, Serkan Okandan.

“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 Nigerian Communications Commission (NCC) and Central Bank of Nigeria (CBN) had averted the takeover sometime in March 2017.

8 Comments

  1. Deleke

    June 20, 2017 at 4:38 pm

    What’s Keem Belo-Osagie doing?

    • Anon

      June 20, 2017 at 7:56 pm

      Doing what he loves doing most. Asset stripping…

  2. Emm Tob

    June 20, 2017 at 4:41 pm

    This is a sad day for me as a Telecoms Engineer and a player in the industry,i just hope the new management will be up and doing to stabilize the company to avoid mass job cut .

  3. Reba the bitch

    June 20, 2017 at 5:31 pm

    Better it is bank sitting on them than King Evans …..lol

  4. Mr. X

    June 20, 2017 at 8:38 pm

    You dont compete with already established telco brands like MTN and Airtel… i vividly remeber how Etisalat nigeria was the last to come into the market.. Nigeria is a different terrain and you need to know how to play the game.. market penetration in the nigerian market is really daunting!

    • RE

      June 21, 2017 at 1:29 pm

      You can compete when there is better infrastructure. I rememberer reading a report of how MTN spent almost 70% of its operational budget on diesel & generator services which amounted to #8 billion in 2015. Obstacles such as this contribute to the problems of Nigerian businesses, making them very vulnerable. I can’t imagine how much of a factor that played in the demise of Etisalat Nigeria. But with better access to power this country could be very great.

      I unfortunately cannot add the link of my research paper on this as my comment would not be posted, but the average business would be spending 4 times more than it should on power using generators and government electricity than using only government supplied electricity If this can be made better I guarantee you many industries would open up for the smaller guys (Also many jobs, imagine if MTN saved 5 billion from the 8 billion it spent on diesel? About 500,000 jobs could be created at a #10 million average per employee.)

    • RE

      June 21, 2017 at 1:33 pm

      *I meant 500 jobs

  5. Abbaźzzzx

    June 21, 2017 at 1:20 am

    If banks takeover ; the need to get reed of the exciting management at directors and COX level because they have been there for the past three years and they were not able to do any thing to resolve the debt crisis.
    Enjoy etisalat Nigeria

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