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$1.2 Billion Debt - Access Bank, Others Take Over Etisalat

21 June, 2017

Source: Leadership

By Chima Akwaja and Nkechi Isaac

Emerging Markets Telecommunication Services Limited, trading as Etisalat Nigeria, yesterday commenced restructuring with changes to its shareholding as a consortium of banks led by the Access Bank Plc under the name United Capital Trustees Limited emerged majority shareholders of the telecom operator.

This followed the failure of Etisalat to offset the remainder of the $1.2 billion syndicated loan granted it to expand its operations few years ago.Consequently, the takeover agreement stipulates that EMTS Holding BV, established in the Netherlands, has up to June 23 to complete the transfer of 100 per cent of the company's shares in Etisalat to the United Capital Trustees Limited appointed as the legal representative of the consortium of banks.

Emerging Markets Telecommunication Services Limited is owned by Mubada 40 per cent, Etisalat Group 30 per cent and the remaining 30 per cent is owned by Nigerian shareholders led by Mr. Bello Hakeem-Osagie, the chairman of Etisalat Nigeria.

Etisalat Group, the parent company of Etisalat Nigeria, announced the takeover officially yesterday in a corporate disclosure filed to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate.

The filing, with reference number Ho/GCFO/152/85, dated June 20, 2017 signed by Etisalat Group Chief Financial Officber, Serkan Okandan, stated that efforts by EMTS to restructure the repayment of the syndicated loan by a consortium of banks to Etisalat Nigeria collapsed.

The filed document reads: "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 per cent and 25 per cent 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 per cent 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".

Meanwhile, Ibrahim Dikko, Vice President, Regulatory and Corporate Affairs, Etisalat Nigeria, in a statement said, "Etisalat Nigeria can now confirm the first stage of this has begun with a change in shareholding which was announced to the Abu Dhabi Stock Exchange this morning.

"Etisalat Nigeria can confirm discussions are on-going regarding other issues such as the trading name during this transition phase. Operations and services to our subscribers remain normal and will in no way be affected as we continue to deliver quality services to our subscribers.

"We will continue to tap into the rich, creative and innovative resources within our workforce to build a stronger business upon the stable foundation we have laid in our nine years of operations.


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