Monday 19 June 2017

Etisalat denies losing its Biggest Shareholder



Etisalat has denied losing its major shareholder, Mubadala Development Company, according to a new report.

Etisalat, reportedly had its biggest shareholder, Mabadala Development Company, pull out of its investment following its inability to repay a loan, in tune of $1.2 billion, it obtained from 13 Nigerian banks. The telecoms giant has now come out to deny both allegations.

In a report, the company said it is premature at this stage of the ongoing discussions to affirm that Mubadala’s exit is the conclusive option.
“Etisalat Nigeria considers it pertinent to state that parties to the negotiation are considering a number of options and discussions are at an advanced stage regarding the syndicated loan agreement with the banks. It will therefore be presumptive and in bad faith to begin to predict the outcome. Discussions have so far been quite collaborative and we expect to reach a final resolution [this] week, by which time we will be in the position to make a definitive announcement,” Etisalat stated.

Etisalat Nigeria confirmed that negotiations with the consortium of banks regarding the syndicated loan agreement signed in 2013 have reached an advanced stage. The company added that they are considering a number of options and are not taking anything off the table at this time.

“Etisalat remains a viable business, having recorded its best financial year in 2016. Parties are keen to ensure that the ongoing discussions and eventual outcome do not affect the day to day operations of the business whether now or after the announcement of our agreement. All parties have continually demonstrated an interest in the continued operations of Etisalat as a business as it remains the backbone of millions of small business owners; multinationals, government and indeed Nigerian subscribers in general,” said Ibrahim Dikko, VP, Regulatory & Corporate Affairs, Etisalat Nigeria.

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