- NCC Assures Etisalat Customers of Adequate Protection
A consortium of banks, led by Access Bank Plc and other Nigerian and foreign banks, has taken over the management of Etisalat Nigeria, effective from June 15.
The takeover followed Etisalat’s inability to repay $1.7 billion (N541 billion) loan sourced from the banks.
The loan, which involved a foreign-backed guaranty bond, was for Etisalat to finance a major network rehabilitation and expansion of its operational base in Nigeria.
The Emerging Markets Telecommunications Services (EMTS) led by former Chairman of United Bank for Africa (UBA), Hakeem Bello-Osagie, had tried to reach agreement on debt restructuring with the banks, but the move collapsed at the last time.
Etisalat Group, the parent company of Etisalat Nigeria, announced the takeover in a filing to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate.
The filing, with reference number Ho/GCFO/152/85, and dated June 20, 2017 signed by Etisalat Group’s Chief Financial Officer, Serkan Okandan, said efforts by EMTS to restructure the repayment of the syndicated loan sourced from a consortium of banks to Etisalat Nigeria collapsed.
It said, “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 per cent of its shares in the company to the United Capital Trustees Limited (the Security Trustee”) of the EMTS Lenders by 15 June 2017.
Meanwhile, the Nigeria Communications Commission(NCC) has reassured the over 21 million Etisalat subscribers on Etisalat network that it will do all within its regulatory power to ensure that they continue to enjoy the services provided by the operator without itches.
In a signed statement by the Director of public Affairs Mr. Tony ojobo, the Commission said it was regrettable that its effort to mediate on the mater between the two parties(Banks and Etisalat) toward negotiation it was not enought to save the day.
But, it restated that assurance on all stakeholders in the telecommunications sector in particular the subscribers on the Etisalat Network that the Commission will ensure that the integrity of Etisalat Network is not compromised.
The statement further reads “Accordingly, the Commission has drawn the attention of the banks to provisions of the Nigerian Communications Act (NCA) 2003 Section 38:
Sub section 1 – The grant of a license shall be personal to the licensee and the license shall not be operated by, assigned, sub licensed or transferred to another party unless the prior written approval of the commission has been granted;
Sub section 2 – A licensee shall at all times comply by the terms and condition of the license and the provision of this act and its subsidiary legislation.
Whilst the banks and Etisalat are working at resolving the issues, the Commission wishes to assure subscribers that they will continue to enjoy the services provided by Etisalat.
