Abu Dhabi-listed Etisalat is considering a sale of its stake in Etisalat Nigeria after the local unit defaulted on a $1.2 billion loan payment but wants the unit’s debt restructured before it starts the sale process, two sources told Reuters.
Etisalat is due to meet with local lenders in Nigeria on Tuesday or Wednesday to discuss the loan default, the source said, adding that the Abu Dhabi listed company was keen to resolve the loan issue and would look for a good price to sell its stake.
Ahmed Bin Ali, senior vice president at Etisalat, said Etisalat Group does not comment on rumours or market speculation. Etisalat Nigeria could not be reached for comment.
The Nigerian banks which extended credit to Etisalat say all they seek is their money and that they are not interested in the take over of the telecoms unit as had been reported.
Businessday learnt that lack of consensus among shareholders may have stalled plans to recapitalize the Nigerian units with the local shareholders fearing a significant dilution at the close of any such capital injection.
Etisalat’s response to disposition of the Nigerian partners could be to pull out completely as soon as the bank debt is refinanced.
In 2015, Etisalat sold its West African units in six countries to Maroc Telecom for a total price of €474 million ($537 million).
The deal was first announced in 2014 when Etisalat secured a 53% shareholding in Maroc Telecom.
Maroc Telecom has now finalised the acquisitions of Etisalat subsidiaries in Benin, Ivory Coast, Gabon, Niger, Central African Republic and Togo.
The combination of Maroc Telecom’s existing West African assets with Etisalat’s network coverage in the region will create a strong French-speaking West African operation, as well as strengthen Etisalat’s position.
