The embattled telecoms company, Etisalat has not been taken over by some Nigerian banks, a member of the consortium of banks has disclosed.
Also, the banks said all they want is for Etisalat to repay the loans it secured as they have to account for the depositors’ funds.
It could be recalled that Etisalat in 2013 got a N541 billion facility from a consortium of 13 banks .It was meant to refinance existing debt of $650 million in order to enhance its network rollout nationwide.
The banks include Access bank includes GTB, Zenith Bank, UBA, Fidelity Bank, First Bank amongst others.
After talks on the loan saga failed, Etisalat Nigeria confirmed that there was an on going restructuring of its shareholding.
In a statement Ibrahim Dikko, Vice-President, Regulatory and Crporate Affairs of Etisalat Nigeria said the telecoms company was weighing the available options.
He said inter alia that “Discussions are ongoing regarding other issues such as the trading name during the transition phase
But a member of the consortium has slammed the announcement by Etisalat as a ploy to whip up sentiment against the banks in order to avert repayment of the loan.
“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”.
According to the insider, Etisalat is capable of paying back since they still have the money but they are seeking a way to run away with the money.
“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”.
The source asked to know Etisalat has done with the loan since there was no evidences of what the loan has been utilized upon.
“They sold towers and frittered away the money. They can’t say that this is exactly what they used the money for”, he said.
The consortium of banks in the Etisalat debt saga has said that it has not taken over the telecom firm or chase away the foreign investor, Etisalat UAE.
The consortium which also noted that there was no share transfer to he banks stated that what the banks wanted is the repayment of the loans because it is depositors’ money which the banks have to account for.
Etisalat had in 2013 secured a N541 billion facility from a consortium of 13 banks to refinance an existing commercial medium term debt of $650 million and continue its network rollout across the country.
The consortium led by Access bank includes GTB, Zenith Bank, UBA, Fidelity Bank, First Bank amongst others.
Etisalat Nigeria in a statement Tuesday announced a share restructuring which will see the banks take over control of the telecom firm.
Ibrahim Dikko, Vice-President, Regulatory and Crporate Affairs of Etisalat in the statement 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.
The statement further added that “Discussions are ongoing regarding other issues such as the trading name during the transition phase.
A member of the consortium however disclosed that the announcement by Etisalat was a ploy to whip up sentiment against the banks so as not to repay the loan.
“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”.
The source noted that Etisalat has the money but only wanted to run away with the money.
“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”.
He wondered what Etisalat has done with the loan as there were no evidences of what the loan was used for.
“They sold towers and frittered away the money. They can’t say that this is exactly what they used the money for”, he said.
It was learnt that the Nigerian banks are concerned because of what has been described as the investment activities of Etisalat in other countries; a development that has heightened fears that the same thing may happen in Nigeria, if unchecked.
Insiders said Etisalat had been previously in Tanzania and India but its exit method from the two countries has cast its willingness to pay up the loans in doubt.
It was noted that the United Arab Emirates telecom operator, Etisalat, invested in Zantel in Tanzania .However, it subsequently sold its 85 percent stake in Zanzibar Telecom limited (Zantel) to Sweden’s Millicom in 2015.
Also, Zantel which had battled larger rivals Vodacom and Bharti Airtel, had a $32 million net liabilities when Etisalat quit.
It is also a known fact that at the end of its romance with Milicom, Etisalat got $1 in cash just as Millicom bore a total debt of about $74 million which was under the terms of the agreement subject to regulatory approval by the Tanzanian Communication Regulatory Authority.
Experts also recalled that the exit strategy of the UAE-based Etisalat from its India operations, Etisalat DB seemed similar to that of Tanzania.
