Stakeholders agree on restructuring plan for Etisalat

Stakeholders in the Etisalat Nigeria may have agreed on a win-win restructuring plan for the telecommunication firm, BDSUNDAY can reliably inform.

A credible source within the company said the plan would involve a marriage of representatives of the consortium of 13 banks, Nigerian stakeholders, the Central Bank of Nigeria (CBN) and the Nigerian Communications Commission (NCC).

Explaining the likely composition, the source said: “We are grateful to all those who have mediated to the point we are in now where we have come to an amicable resolution in the interest of all parties. It is a win-win arrangement; a symbiotic exercise at that. All the stakeholders have agreed that the Consortium of the 13 banks would have four representatives on a 7-member interim board; two representatives will come from the Nigerian stakeholders and one will represent the CBN/NCC. The essence of this arrangement is to ensure that all the parties have a stake in the business.”

The resolution which has elicited complementary remarks from analysts, may have stemmed the tide of likely loss of numerous jobs which was one of the concerns of many stakeholders when the story broke.

Etisalat Nigeria ran into trouble with the Consortium of 13 Banks that staked $1.2billion to fund its expansion project in 2013.

BDSUNDAY reliably gathered that the new arrangement necessitated the resignation last Friday of Hakeem Belo-Osagie, as the chairman of Etisalat Nigeria.

It would be recalled that Belo-Osagie had planned to leave immediately the banks made the take-over move, but was prevailed upon to tarry awhile until a road map for the company was finalised.

A statement announcing the eventual pulling out of the erstwhile chairman, a copy of which was obtained by BDSUNDAY, said: “The timing of the resignation was strategically delayed till now when stakeholders have agreed a plan and comes more than a week after Mubadala Development Company directors tendered their resignation. The development also reflects Belo-Osagie’s deep commitment to protecting the interest of all stakeholders.”

According to the statement, “It is now expected that Etisalat Nigeria under its new shareholding structure will navigate through its current loan repayment challenge with minimum impact.

“Over the last several months, the chairman has worked extensively with critical stakeholders to prepare clearly articulated strategies and robust road maps that will mitigate the impact of the new shareholding restructuring and realignment on the operations and management of the 4th largest telecoms player in Nigeria.

“With this development, the new board will assume control of Etisalat. This is coming following interventions, which have been roundly applauded, from regulatory agencies, including the Nigeria Communications commission (NCC) and Central Bank of Nigeria (CBN) and other stakeholders to ensure that the best decisions are taken in the interest of the subscribers, employees and the Nigerian economy.”