Abu Dhabi telecoms group, Etisalat, may sell its stake in Etisalat Nigeria, which has defaulted on a $1.2bn loan, but wants the company’s debt restructured before it does so, Reuters quoted two sources as informing it on Monday.

The Central Bank of Nigeria and the Nigerian Communications Commission on Friday agreed with local banks to pursue a default deal rather than a receivership for Etisalat Nigeria so as not to deter investors and to avoid a wider debt crisis.

Etisalat is due to meet with creditors on Tuesday (today) or Wednesday to discuss the default, the sources said.

It was not clear whether Etisalat, which has a 45 per cent holding in the Nigerian unit after converting a loan to equity in February, would divest completely.

The Senior Vice-President of Etisalat, Ahmed Bin Ali, according to Reuters, declined to comment, while Etisalat Nigeria could not be reached.

“It is at an early stage,” one source said of the sale.

Last week a banking source told Reuters that the Nigerian affiliate of Etisalat had given notice to its lenders that it would miss a payment in February, but the two sides have yet to agree terms.

Etisalat Nigeria signed a $1.2bn medium-term facility with 13 indigenous banks in 2013, which it used to refinance an existing $650m loan and modernise its network.

But an economic downturn, a currency devaluation and dollar shortages on Nigeria’s interbank market led to it missing payment, the Vice-President for regulatory affairs at Etisalat Nigeria, Ibrahim Dikko, said.

Banks involved in the loan include Zenith Bank, GTBank, First Bank, UBA, Fidelity Bank, Access Bank, Ecobank, FCMB, Stanbic IBTC Bank and Union Bank.

Abu Dhabi state investment fund, Mubadala, which has a 40 per cent stake in Etisalat Nigeria, wants a solution found, another source said. Mubadala declined to comment.

Etisalat has been hit hardest among foreign firms by dollar shortages in Nigeria. Firms that invested in the country in the era of high oil prices are struggling to repay loans or keep operating as the oil producer suffers from a slump in oil revenues, hitting its currency and dollar reserves.

Etisalat’s Chief Strategy Officer, Khalifa Hassan al-Forah al-Shamsi, told Reuters that it was making sure that in markets where there were currency fluctuations, operating costs were in local currencies. Though he was not responsible for Nigeria.

Etisalat Nigeria has 20 million subscribers, according to Nigeria’s telecom regulator, making it the country’s number four mobile operator with a 14 per cent market share. South Africa’s MTN has 47 per cent; Globacom, 20 per cent; and Airtel, a subsidiary of India’s Bharti Airtel, 19 per cent.

http://punchng.com/etisalat-may-leave-nigeria-over-1-2bn-loan-default/ lalasticlala, Mynd44, dominique

oops sorry

Many would go jobless

That's a pity, people about to loose their jobs.

Too Bad..The Economic is too harsh to do business, how do we attract FDI's and FPI's, May God help us o

That's the reason for Call/data hike rates

Silly network

Hope a better company will take over

Choi! Now they are talking

This is rather unfortunate. Etisalat was one of the fastest networks I've ever used until we entered the change era that came with recession. I had to look for other affordable alternative, for some reasons their prices didn't go down but rather up. I guess others like me jumped ship.

So long speed network, it's not your fault that our economy is just as sick as our president, probably even worse. I hope you guys make some kind of comeback or sell the damn company to glo.

They should leave jare. Stingy network.

Where is AMCON when you need them?

hope it will not affect the etisalat users.

justi4jesu:
That's a pity, people about to loose their jobs.

CROWNWEALTH019:
Many would go jobless

justi4jesu:
That's a pity, people about to loose their jobs.

Yeah right but many will get a job when new company take over

Tazdroid:
Hmmm, no wonder Etisalat 1.5gb and 3.5gb data plans increase from 1k and 2k to N1200 and 2,500!


So na sharp sharp una won pay the loan with our money??

I stopped using their network immediately after then.
No information, nothing. They just switched to favour them.

Etisalat had gone through series of metamorphosis, they are not the same as OLD.
This one's are very stingy. Money money , alot of profits is their top priority.

They got what they deserve

Can someone tell me, if they do sell, what would happen to the existing lines on the network?

timilehing:
Yeah right but many will get a job when new company take over

Where are the new companies?

mjabdulk:
hope it will not affect the etisalat users.

And workers too

etisalat never see chuntin

*sigh* thought it was Mtn.

Hmmmm

lol.. dem no even get better package na why dem dey deduct person credit, come give An one silly excuse. like "dear customer you subscribed to baba ijebu lotto" 100ngn/SMS

Foreign companies should learn to transact with local currency. Imagine a company in US or Europe trying to pay staffs with yen or yuan or ruble
Nigeria needs to ban any local transaction with foreign currency

They will sell the company,





Actually, something strange happen to me yesterday, I wanted to play PES 2017 on my laptop yesterday, i choosed ARSENAL & the computer automatically select BAYERN MUNICH as my opponent. when it finished loading, my players refused to come out...

ωнσ тнєу єρρ вєfσяє

...Another victim of buhari's incompetence..na wa.

good for them

banks hv bought d netwrk.. no need for panic

Dats so bad...

I will urge Dem to solve their problems,cus dis Etisalat unlimited cheat I dey rock here,dey swit me die..