The parent body of telecoms company, Etisalat which owns 45 percent holding in Etisalat Nigeria, says it wants to restructure the company’s debt before possibly selling its stake in the Nigerian business.
The mobile operator defaulted on a $1.2 billion loan. It borrowed the sum in 2013 to upgrade and expand its network. It was however unable to continue repayment of the loan – an action that prompted the decision of the Nigerian banks to take over the company.
Nigeria’s central bank and telecoms regulator on Friday agreed with local banks to pursue a default deal rather than a receivership for Etisalat Nigeria so as not to deter investors and to avoid a wider debt crisis.
According to a Reuters report, the Abu Dhabi telecoms group is scheduled to meet with creditors in Nigeria on Tuesday or Wednesday to discuss the default.
It is however not clear if the company will divest completely.
Etisalat Nigeria is the fourth largest mobile operator with 20 million subscribers and a 14 percent market share.
