Now it seems things are going to get very messy as some Nigerian banks have taken over telecommunications company, Etisalat. Recall that they had attempted to do this earlier, but was stopped by the intervention of the Central Bank of Nigeria and the Nigerian Communication Commission.
The Etisalat takeover occurred following the breakdown of its negotiations with Nigerian banks over its USD1.2 billion loan.
According to reliable reports, the takeover followed the collapse of the 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.
The Etisalat group, parent company to Etisalat Nigeria announced this in a filing to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate.
“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 extended the deadline for the share transfer to 5.00 pm Lagos time on 23 June 2017,”