NCC, banks differ on total take over of Etisalat

As the management team of Etisalat, led by its chief executive officer (CEO), Mr. Matthew Willsher, resigned, a fresh crisis is brewing over who takes total charge of the debt-ridden telco.

The earlier arrangement that Etisalat chief financial officer (CFO), Mr. Wole Obasunloye, would take over the baton from the CEO was not to be as the creditor banks opted for a total clean up of the system.

Earlier, the board had resigned en mass, following the pulling out by the foreign investor, Mubadala Development Company an Emirates Telecoms Group Company (Etisalat Group).

It was learnt that the Nigerian Communication Commission (NCC) has not been in support of the consortium of banks wholly taking over the company, based on the $1.2 billion unpaid loan.

The regulatory body is of the opinion that the investment value in Etisalat is not only limited to the loan.

“From all indications, the banks are now to reconstitute both the board and management team.

“But NCC is of the view that there is the need for an elaborate arrangement to reflect the fact that other investors’ interests are still in the company,” said a senior management staff of Etisalat who would not want to be named.

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However, CBN spokesman, Isaac Okoroafor said the apex bank is on top of the game.

He confirmed that the banks had made plans to reconstitute a fresh management team, but he was silent on the fate of the board.

“Series of meetings are ongoing and until a final decision is taken on the matter, the issue should be seen as unfolding,” Okoroafor said.

The resignations also followed Etisalat Group’s reporting disclosure on the Abu Dhabi Stock Exchange two weeks ago that it had pulled out of Etisalat Nigeria and was transferring 45 per cent of its stake and 25 per cent of its preference shares in its Nigerian subsidiary to United Capital Trustees Limited, the legal representative of the lending banks.

Etisalat had in 2013 approached a consortium of 13 local banks for a loan of $1.2 billion for network upgrade and expansion. The money was sourced in dollar and naira denominations.

It was gathered that though Access Bank’s commitment in the loan deal is about $131 million and N40 billion, the other banks elected it as their anchor in the deal.

A further breakdown showed that Zenith Bank is having the highest, amounting of $262 million and N80 billion; GTBank has $138 million and N42 billion; UBA $125 million and N38 billion; FirstBank – $79 million and N24 billion; Fidelity Bank – $56 million and N17 billion; Stanbic IBTC – $25 million and N7.5 billion; FCMB – $15 million and N4.5 billion; while Ecobank has $10 million and N3.1 billion.

But despite claims by the banks that the telecom had been reneging in servicing the loan, Etisalat, in a statement two weeks ago, had countered the allegation stating that it had paid $500 million as at February 2017.

It claimed that its total outstanding to the banks stood at not above $574 million as at Match 2017, excluding some charges.

 

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