A consortium of banks led by Access Bank Plc has taken over the management of Etisalat Nigeria, effective June 15, following the inability of Emerging Markets Telecommunications Services (EMTS) to reach an agreement with some banks over a $1.72 billion (N541.8 billion) debt impasse.

However, EMTS which is promoted by one-time chairman of the United Bank for Africa (UBA), Hakeem Bello-Osagie, has up to June 23 to complete the transfer of 100 percent of the company’s shares in Etisalat to the United Capital Trustees Limited, the legal representatives of the consortium of banks.

The takeover announcement was made by Serkan Okandan, Chief Financial Officer of Etisalat Group, the parent company of Etisalat Nigeria on Tuesday in a filing with reference number Ho/GCFO/152/85 and dated June 20, 2017 to the Abu Dhabi Securities Exchange in the United Arab Emirates.

“Further to our announcement dated 12 February 2017, Emirate Telecommunications Group Company PJSC, “Etisalat Group” would like to inform you that Emerging Markets Telecommunications Limited “EMTS” established in Nigeria and an associate of Etisalat Group with effective ownership of 45% and 25% ordinary and preference shares respectively, defaulted on a facility agreement with a syndicate of Nigerian banks (“EMTS Lenders”) the filing read.

“Subsequently, the discussions between EMTS and the EMTS Lenders did not produce an agreement on a debt restructuring plan. Accordingly, the company received a default and security Enforcement Notice on 9 June, 2017 requesting EMTS Holding BV (EMTS BV) established in the Netherlands, and through which Etisalat Group holds its interest in the company, to transfer 100 percent of its shares in the company to the United Capital Trustees Limited (the security Trustee) of the EMTS Lenders by 15 June 2017.

“Subsequently the EMTS Lenders extended the deadline for the share transfer to 5:00 pm Lagos time on 23 June 2017,” the filing added.

It would be recalled that Etisalat Nigeria has been under pressure since 2016 following the demand notice for the recovery of a $1.72 billion loan facility it obtained from a consortium of banks in 2015 to enable the mobile telephone operation finance a major network rehabilitation and expansion of its operational base in Nigeria.

The consortium of banks with the support of their foreign partner, had threatened to take over the company and its assets across the country for its inability to meet its agreed debt servicing obligations since 2016.