NewsExpress banner First Bank Fashion Souk Fidelity bank card banner Umm Sulaim's Thoughts Camano banner

BREAKING NEWS: Banks take over Etisalat

By News Express on 20/06/2017

Gmail icon

Views: 2,307


Some banks have now taken over the management of telecommunication company, Etisalat Nigeria.

The Banks, led by Access Bank PLC and other local and foreign banks have taken over the telecommunication company effective June 15.

The take-over came as a result of a futile 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 letter filed to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate.

A letter dated June 2017, with No. Ho/GCFO/152/85 signed by Etisalat Group Chief Financial Officer, Serkan Okandan, noted that efforts by EMTS to restructure the repayment of the syndicated loan by a consortium of banks to Etisalat Nigeria collapsed.

It added, “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 extend the deadline for the share transfer to 5.00 pm Lagos time on 23 June 2017,” the filing said.

The Telecommunication company 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, succeeded in persuading the banks to rethink their threat and give Etisalat a chance to renegotiate the loan’s repayment schedule.

•Sourced from PREMIUM TIMES.

Source News Express

Posted 20/06/2017 12:44:50 PM

 

 

CLASSIFIED ADS

 

You may also like...
Fashola, Nnaji, Mohammed, others brainstorm on ways to...

Money Laundering: EFCC indicts banks

Coalition of older people calls for establishment of...

Our intervention in Etisalat crisis to attract $2bn...

Michael Jackson's father is dead

Total, NNPC inaugurate N1bn projects in 8 states...

Ramadan: Saraki seeks prayers for peace, security

Emefiele donates all gifts received at mother’s funeral...

Engineers warn of imminent tragedy in Imo State,...

REVEALED: CCT’s order used by Buhari to suspend...

Kaduna NUJ chair bags Actors Guild award

‘Mounting political risks’ likely to delay MTN’s Nigeria...

 

Latest News BREAKING: Explosion rocks Ebonyi school DSS bows to court; releases Sowore, Bakare ISWAP terrorists abduct 14, including two Red Cross workers Two Nigerian varsity students deported to Bosnia Don’t handcuff me in public, Orji Kalu begs prison warders Rape victim set on fire on way to court hearing How police officer murdered my son: Ex-Senator Titi Ajanaku’s death shocking - Obasanjo 2,000 repentant bandits surrender weapons to Zamfara Govt Eight dead, including children, in gas explosion Pirates kidnap 19 crew members from Greek tanker off Nigeria Kano Assembly defies court, passes new Emirates Bill

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (568,886 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (455,217 views) Shameless Genevieve Nnaji exposes breasts in public (404,999 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (339,707 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (306,557 views) 10 cars more expensive than Jets (290,125 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (260,606 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (259,379 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (240,829 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (227,331 views) Lagos plane crash: Journalist releases victims’ names (203,234 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (199,734 views)

 

CBN milk production

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (111) Business & Economy (4,610) Business Verdict (89) Columnists (1,154) Complaints & Requests (97) Enterprise & Opportunities (219) Entertainment (715) Features (851) Global Business Monitor (497) ICT Monitor (71) International (4,299) Interview (216) Live Commentary (30) Love Matters (177) Maggie's Blog (505) News (54,862) Opinion (1,434) Pidgin (18) Politics (11,845) Religion (1,129) Sports (2,243) Stock Watch (40) AMA & Al Jazeera Global Update

 

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera