Etisalat Nigeria is now set to change its ownership structure after talks with banks to restructure its $1.2bn loan failed.
This came months after discussions with a consortium of 13 banks including Access Bank Plc and Guaranty Trust Bank Plc to restructure its loan after missing repayment deadlines failed to produce an agreement.
In a statement on Tuesday, Etisalat Nigeria confirmed the development and said it had commenced the restructuring with changes to its shareholding.
The statement, signed by the Vice-President, Regulatory & Corporate Affairs, Etisalat Nigeria, Ibrahim Dikko, did not give details of the new shareholding structure and the likely trading name.
Dikko said discussions were still ongoing regarding other issues such as the trading name during the transition phase.
Etisalat Group, the parent company of Etisalat Nigeria, on Tuesday announced the changes to Etisalat Nigeria’s shareholding in a letter filed to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate.
UAE’s Etisalat (Etisalat Group), with a 45 per cent stake in the Nigerian arm, also said it had been ordered to transfer its shares to a loan trustee byJune 23, after negotiations failed, Reuters reported.
It added it was carrying the stake at nil value.
It added it was carrying the stake at nil value.
The Emerging Markets Telecommunication Services Limited, also known as Etisalat Nigeria, has up to June 23, 2017 to complete the transfer of 100 per cent of the company’s shares in Etisalat Nigeria to the United Capital Trustees Limited, the legal representative of the consortium of 13 banks.
Dikko said the management was continuing to run the business after the shareholding changes and that there were contractual and regulator issues to be finalised.
The Nigerian industry regulators had tried to prevent lenders placing the telecom firm into receivership to avoid a wider debt crisis and agreed with banks to pursue a default deal.
But banks, under pressure to avoid loan-loss provisions, have been pushing to finalise restructuring before half-yearly audits this month.
Punch
