A Case Of A Take Over | Access Bank Now in charge of Etisalat Nigeria

According to from premiumtimes Nigeria, Reports have it that Etisalat Nigeria has gotten new owners, this is as a result of the inability of the telecom company to reach an agreement with the banks on its N541.8 billion debt restructuring plans.


According to Premium Times, a consortium of banks, led by Access Bank PLC and other Nigerian and foreign banks, has taken over the management of Etisalat Nigeria, effective June 15.

Although Etisalat has up to June 23 to complete the transfer of 100 percent of the company’s shares in Etisalat to the United Capital Trustees Limited, the legal representative of the consortium of banks.


In another report by Vanguard, an Etisalat Nigeria spokesman said the company was still in discussions with lenders to find a “non-disruptive” solution. However, Etisalat Group, the parent company of Etisalat Nigeria, announced the takeover on Tuesday in a filing to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate.

According to the filing:

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.
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