Telecom company may get sold if it doesn't fix up in six months

Etisalat’s new seven-member board will have six months to work their magic on the telecom company before effective decisions on an outright sale or merger options will be tabled.

The telecom operator, Nigeria’s fourth largest, has been involved in a battle with a consortium of 13 Nigerian banks which it owes a $1.2 billion loan facility after it notified the banks of its inability to finance the debt due to Nigeria’s forex problems.

All of that has now been resolved thanks to resolution from all parties involved as well as regulators namely the CBN and NCC. The old board was dissolved (except for Aliko Dangote’s seat), CEO Matthew Willsher and CFO Olawole Olasunloye resigned and new appointees have taken over those positions.

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The banks owed, who still want their money, will have four seats on the board, according to a Guardian report. The remaining seats will be taken by the government (one) and shareholders of Etisalat (two).

Reports from sources knowledgeable on the matter confirm that the new management has six months to work out Etisalat’s kinks, after which the new board will have to decide whether to sell the company or work out a merger with another player.

Pulse Tech will keep you updated as new details unfold.