LAGOS – Contrary to reports in a section of the media, the banks being owed $1.2 billion by Etisalat Nigeria are yet to take over the telecommunication company from the investor, Etisalat UAE.
The consortium of banks led by Access Bank says it is interested only in the repayment of the loans since depositors are already asking for their money.
Other banks in the consortium are GTB, UBA, Zenith Bank, Fidelity Bank, First Bank among others.
According to the consortium, there was no share transfer to the banks, insisting that Etisalat has the money but planning run out of Nigeria with it.
It was further gathered from a member of the consortium that the announcement by Etisalat was a ploy to whip up sentiment against the banks so as not to repay the loans.
The source says “It is all lies that we have taken over the telecom firm. Etisalat has been leaking our discussions to the media to discredit us. All we wanted is our money and we are not interested in the collapse or takeover of the firm.
“We have given them concession on the loan in addition to options like injection of more capital, equity restructuring but they don’t want to do that. Etisalat was insisting that it has suffered devaluation.
“They sold towers and frittered away the money. They can’t say that this is exactly what they used the money for.”
It will be recalled that Etisalat Nigeria had in 2013 secured a N541 billion facility from a consortium of 13 banks led by Access Bank to refinance an existing commercial medium term debt of $650 million and continue its network rollout across the country.
Meanwhile, talks about the restructuring of the loans have been ongoing but appear to have collapsed.
But, in a statement on Tuesday, Etisalat Nigeria, announced a share restructuring which will see the banks take over control of the telecom firm.
The statement signed by Ibrahim Dikko, Vice-President, Regulatory and Corporate Affairs of Etisalat, noted that the negotiations were considering a number of possible options including bringing in new equity partners or going into a merger with other industry players.
“Discussions are ongoing regarding other issues such as the trading name during the transition phase,” Dikko said.
According to investigations, Nigeria is not the first country where Etisalat would try to play smart.
Etisalat had refused to repay loans in other countries such as Tanzania and India.
The United Arab Emirates telecom operator, Etisalat, invested in Zantel in Tanzania with 85 percent stake in Zanzibar Telecom limited (Zantel) and in India 45 per cent stake in Etisalat DB, a joint venture between Indian player DB Group and Etisalat of UAE.
It is on records that Etisalat UAE sold the stakes in both countries making substantial gains and leaving the local stakeholders in debt.
