$1.2bn LOAN DEFAULT: Etisalat chairman, Osagie resigns

The chairman of Etisalat Nigeria, Mr. Hakeem Bello Osagie, on Friday resigned his appointment with the telecommunication company.

It was learnt that his resignation was with immediate effective.
His ouster follows what inside sources described as total restructuring of the embattled firm, in line with an accepted plan by the consortium of banks that lent the telcoms company $1.2 billon in 2013.

It would be recalled that there was a mass resignation of the seven-man board in a bid to absolve themselves of any complexity in the management of the banks’ loan .

Osagie, it was also learnt had intended leaving the firm immediately the banks made the take-over move but decided to hold on to a time when a road map for the company was finalised.

The company stakeholders having agreed a plan, Osagie was said to have considered it the right time to move on.
His resignation came more than a week after Mubadala Development Company directors tendered their resignation.

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“With this development, the new board will assume control of Etisalat”, the source stated.
But spokesperson for the embattled telecoms firm, Gbenga Okunowo, said there was no pressure on the board members and its chairman to resign, contrary to speculation.

He put it this way: “It is a common practice in the corporate world for directors of companies with issues that have attracted attention of outsiders to leave. All us for the best interest of finding lasting solution on how to move forward” he state in a phone chat.

On the change of mind of Belo-Osagie to leave, as against his earlier stance to remain, pending the resolution of the crisis, it was learnt that the decision to quit was informed by a sudden development, which Okunowo declined to disclose.

But it was gathered that with the departure of Mubadala Development Company, which used to have the substantive shares of the company equity, there was an agreement that all local investors should allow the devaluing of their investment as to enable fresh investors come into the ownership structure of the firm.

A source said: “Simple meaning of the position is that the board has technically been dissolved. Therefore, many are not surprised on hearing that the board members, including their chairman had left.

“The coast is now clear for the banks and the Central Bank of Nigeria (CBN) including other stakeholders to decide what to do with the company,” the source said.

It is believed that Etisalat Nigeria, under a new set of investors would find a way out in rescheduling the loan as not to affect the service delivery of the firm.

It was also learnt, that the consortium of banks had already given the relevant authorities a list of a new board to be made public soon.

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