Business

Creditors take over Etisalat

Published

9 years ago

June 20, 2017

Access Bank PLC and other Nigerian and foreign banks have taken over the management of Etisalat Nigeria.

The National Daily gathered that the consortium took over following the failure by Emerging Markets Telecommunications Services, EMTS, to hit ot off with the lenders on debt restructuring plan of the $1.72 billion (about N541.8 billion) debt.

But EMTS Holding BV, the Netherlands-based conglomerate, has up toJune 23 to transfer 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 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”).

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“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.

The takeover was effective from June 15.

The promoter of the company in Nigeria is former banker and federal lawmaker Hakeem Bello-Osagie, a low ranker on Forbes’ rich list in Africa.