13 Nigerian banks and their overseas partners have forced the exit of the foreign investors in Etisalat Nigeria, just as the creditor banks move to formally take over the telecom company’s management.
But Etisalat Nigeria said negotiation with the banks on outstanding indebtedness was still on-going as at yesterday, while a major equity restructuring gets underway. The Nigerian banks in the USD1.7 billion debt web include Access Bank, Guaranty Trust Bank, FirstBank, Zenith Bank, Union Bank, United Bank for Africa, UBA, and Ecobank. Others are FCMB, Stanbic IBTC, Fidelity Bank, Keystone Bank, FSDH Merchant Bank and Mainstreet Bank.
The banks are expected to assume management of the company to recover their monies, following failure of the debt management and restructuring earlier worked out this year. This failure, Vanguard learned, had prompted the foreign shareholder to announce a pull out, yesterday, with the Nigerian company, describing the pull out as the first step towards a full equity
The consortium, comprising Nigerian and foreign banks, said it got the approval to take over the management of Etisalat Nigeria, effective June 15, but decided to extend enforcement of the order to June 23, 2017 after which Emerging Markets Telecommunications Services, EMTS, may have completed transfer of the 100 percent of the company’s shares in Etisalat to the United Capital Trustees Limited, the legal representative of the consortium of banks. The takeover followed the collapse of the efforts by EMTS to reach agreement with the banks on restructuring plan for the $1.72 billion (about N541.8 billion) debt.