Etisalat Telco transfers 45% stake to Nigerian Banks

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Etisalat Nigeria had recently been in talks with a consortium of commercial banks and services provider -IHS Towers, to restructure it's $1.2 billion loans after missing the repayments.

L-R CMO of Etisalat Nigeria, Angelone Francesco, MD/CEO of GTBank, Mr Segun Agbaje and an official of Etisalat Nigeria during the launch of Easysavers. play

L-R CMO of Etisalat Nigeria, Angelone Francesco, MD/CEO of GTBank, Mr Segun Agbaje and an official of Etisalat Nigeria during the launch of Easysavers.

(Nairaland Forum)
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There is an indication that one of the leading Telecommunication Companies (TELCOS) in Nigeria, Etisalat Nigeria has transferred 45% of its equity stake to a consortium of banks, as a result of its debts.

This information was released earlier today by Reuters after news of the failed debts structuring talk was announced.

Etisalat Nigeria had recently been in talks with a consortium of commercial banks and services provider -IHS Towers, to restructure it's $1.2 billion loans after missing the repayments.

Etisalat Nigeria commenced business in 2009 after acquiring the unified access licenses - a mobile license and spectrum in the GSM 1800 and 900 MHZ bands, from the Nigeria Communication Commission (NCC) in 2007.

In 2015, the Teleco approached a consortium of Nigerian commercial banks which include Access Bank, Guaranty Trust Bank and Zenith Bank Plc, for a loan of $1.2 billion to expand its operations and coverage in the company. The company also had a Tower Rental Financing agreement with the IHS Towers.

Also Read: Telecom makes progress in debt talk, loses 2.9 million subscribers in 6 months

Three Nigerian banks with huge part of the Etisalat $1.2 bn debt. play

Three Nigerian banks with huge part of the Etisalat $1.2 bn debt.

Etisalat Nigeria had sold all its telecommunication towers to IHS Towers, and thereafter entered a rental agreement with the telecom infrastructure company.

In a move towards stopping the commercial banks from taking over the company, the Central Bank of Nigeria and the NCC had implored the creditors to consider other options to placing the company under a receivership.

Also, the largest shareholder in the company, the Mubadala Development Company sent a delegation to meet the regulators and creditors towards achieving a better debts restructuring outcomes. All efforts seem unproductive.

Also Read: UAE’s Mubadala group meets the Nigerian government over takeover threat

Last week, the Mubadala Development Company was hinted to have exit its investments in Etisalat Nigeria but awaiting the result of the debt talks before announcing it. The Mubadala controls 70 percent in the company.