Etisalat may sell Nigeria stake over debt default?

17 March 2017

Mergers, Acquisitions and Financial Results

UAE telecoms group Emirates Telecommunications Corporation (Etisalat) could sell its stake in its Nigerian wireless unit, which missed a payment on a USD1.2 billion loan, after the cellco’s debt is restructured, Reuters cites two sources as saying.

Last week the Central Bank of Nigeria (CBN) and telecoms regulator the Nigeria Communications Commission (NCC) agreed with local banks to pursue a default deal rather than a receivership for Etisalat Nigeria, to avoid deterring investors and a wider debt crisis.

Etisalat is due to meet with creditors in Nigeria this week to discuss the default, the unnamed source said, adding that it was not clear whether the UAE telco, which increased its stake in Nigeria’s fourth largest mobile operator from 40% to 45% after converting a loan to equity in February, would divest completely.

Source: All Africa