₦airaland Forum

ihedioramma:
Access Bank has now taken over
the management of telecommunication company, Etisalat Nigeria.
Besides Access Bank, other local
and foreign banks are said to be part of the takeover of the telecommunication company which takes effect from June 15. The take-over came as a result of
a futile effort by Emerging Markets Telecommunications Services, EMTS, promoted by- one time Chairman, United Bank for Africa, UBA, Hakeem Bello- Osagie, to reach agreement with the banks on debt restructuring plan in the protracted $1.72 billion (about N541.8 billion) debt impasse. However, EMTS Holding BV, established in the Netherlands, 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 representative of the consortium of banks.
Etisalat Group, the parent company of Etisalat Nigeria, announced the takeover on Tuesday in a letter filed to the Abu Dhabi Securities Exchange in Abu Dhabi, United Arab Emirate .

Intendy:
so far you bought after qualification pls take your mind off the #417.12k.
Then you are with a spoon they are with a shovel eating from the same plate.
if you can endure no wahala but they'll dictate the way you eat even with your small size spoo

Intendy:
for the present bull run it is bad

stcool:
It would have been a perfect opportunity for the government to take over and list the company on the NSE, but greedy banks would not let it go forward. Watch how they would mess up the company and start diverting contracts and fill in positions for their selfish benefits.

Where is NCC when you need them the most?

sellydion:
There was cause for celebration Monday, when the federal government issued its first diaspora bond in the international capital market, raising the sum of $300 million at coupon rate of 5.625 per cent for a tenor of five years.

The Director General of the Debt Management Office (DMO), Dr. Abraham Nwankwo, explained in a statement Monday that the diaspora bond, which was 130 per cent subscribed, was targeted principally at Nigerians abroad, to provide them with the opportunity to contribute to national development.

According to Nwankwo, the bond was structured as a retail instrument to appeal to a wide range of investors and was offered through private banks and wealth managers, rather than institutional investors, which normally deal in large volume transactions.

He revealed that there was considerable interest from investors from all over the world, with the issue attracting initial orders of about 190 per cent of the offered amount.
Final subscriptions were about 130 per cent of offer at the final price for the transaction.
“The diaspora bond has opened a new source of financing for the Federal Government of Nigeria for funding projects for the development of the country.

“This new window further enhances funding liquidity and flexibility of the Nigerian economy, which are necessary characteristics as the country gathers momentum towards the attainment of advanced economy status,” he said.
Nigeria is the first African country to issue a bond targeted at retail investors in the United States, a market highly regulated by the United States Securities and Exchange Commission (U.S. SEC).

The only previous U.S. SEC registration for an African country was targeted at institutional investors.
The issuance of a bond registered by the U.S. SEC provides an opportunity to access a wide range of investors, Nwankwo explained.
With this development, Nigeria can now routinely access funds from private banks and wealth managers in the U.S. and European markets: this opportunity is not available to other developing countries that have only issued Eurobonds.

Reacting to the successful debt raising, the Minister of Finance, Mrs. Kemi Adeosun, said: “To have received the approval of the U.S. SEC was indicative that the highest level of transparency and accountability in the economic process has been attained.”
She explained that the bond should positively impact the country’s credit rating, transparency rating and financial market development index rating.

“The Diaspora Bond is the first bond issued by an African sovereign registered with both the U.S. SEC and the United Kingdom Listing Authority (UKLA) and targeted at retail investors,” she stressed.

With the successful issuance of the debut Diaspora Bond, Nigeria will establish a programme for raising funds from Nigerians and Friends of Nigeria in Diaspora, as an avenue for continuous participation in the development of the economy.
Market experts also hailed the move by the country, pointing out that Nigeria was able to raise the sum under the very restricted U.S. retail market.

This, according to experts, opened new window for programmed sourcing of diaspora funds.
“Unlike the Eurobond which restricts you to only institutional investors, to be authorised by U.S. and European regulators to issue a retail product means you can now approach wealth managers and private banks. In short, you have no more real restrictions,” one analyst who preferred not to be named, explained.

The international Joint Lead Managers to the issue were Bank of America Merrill Lynch and the Standard Bank of South Africa Limited.
The Nigerian Joint Lead Managers were First Bank of Nigeria Limited and United Bank for Africa Plc.
Prior to its issuance, the presidential aide for foreign affairs and diaspora, Hon. Abike Dabiri-Erewa, had urged all Nigerians to take advantage of the first ever diaspora offer by buying into the bond.

She said her office and Nigerians in the diaspora were excited about the offer, adding that it was a unique way of lubricating the interest of Nigerians abroad to participate in the development projects being carried out by the Muhammadu Buhari administration.

Preparatory to the debt issuance, Nwankwo had led the federal government delegation, comprising officials of the DMO, Ministry of Finance, Central Bank of Nigeria (CBN), and the Budget Office of the Federation on investor roadshows that took place in major cities of the world, including London, New York, Miami and Geneva.

stcool:
It would have been a perfect opportunity for the government to take over and list the company on the NSE, but greedy banks would not let it go forward. Watch how they would mess up the company and start diverting contracts and fill in positions for their selfish benefits.

Where is NCC when you need them the most?

ExLaidback:
http://www.premiumtimesng.com/news/headlines/234571-breaking-n541-billion-debt-access-bank-others-take-over-etisalat-nigeria.html

&

stcool:
This is excatly my anger with most of this CEO'S, investors go through hell with them and when light starts to show up they start unbundling the company gradually for their selfish benefits. Leaving the empty can to small investors.

Look at what WALE is doing @Oando after raising so much from investors he keeps diluting their shares and divesting major revenue generating businesses. Why on earth would Oando divest its downstream assets to Helios

The least I expected them to do was sell to existing shareholders at the same price Helios was willing to pay, and list it as a separate entity on the stock exchange. You can't quantify what Oando share holders has gone through in the last 5 years.

If Tony is towing the same line, time will tell.

ExLaidback:
This is a big win for the lenders in this case and so reasonably good for their mid to long term stock price. I'm speaking as an outsider.

This is simply because, Etisalat didn't run into a blind spot because of bad profitability or operations per se. It found itself in this bind primarily because it was unlucky to have taken a dollar denominated loan shortly before the dollar was devalued. Right? So the company by and large is profitable - especially now that they no longer have to pay interest on the loan since it has been converted to equity.

So in the interim the lenders have a source of cash flow while they scout around for new buyers (note that they are not likely to hold onto Etisalat since they don't necessarily have the expertise to manage it). They're also likely to sell it at a profit. (since as i said above, I believe that Etisalat is still a profitable company).

The point I'm making in essence is this would have been an entirely different story IF Etisalat's indebtedness was due only to poor management and not unfortunate circumstances.

So the major losers in this deal are the previous owners who've lost hold of the company.

However my take as outlined above only holds if the new owners allow the current management to manage the business without undue interference and so on, unfortunately this is Naija...So I might be wrong

ExLaidback:
This is a big win for the lenders in this case and so reasonably good for their mid to long term stock price. I'm speaking as an outsider.

This is simply because, Etisalat didn't run into a blind spot because of bad profitability or operations per se. It found itself in this bind primarily because it was unlucky to have taken a dollar denominated loan shortly before the dollar was devalued. Right? So the company by and large is profitable - especially now that they no longer have to pay interest on the loan since it has been converted to equity .

So in the interim the lenders have a source of cash flow while they scout around for new buyers (note that they are not likely to hold onto Etisalat since they don't necessarily have the expertise to manage it). They're also likely to sell it at a profit. (since as i said above, I believe that Etisalat is still a profitable company).

The point I'm making in essence is this would have been an entirely different story IF Etisalat's indebtedness was due only to poor management and not unfortunate circumstances.

So the major losers in this deal are the previous owners who've lost hold of the company.

However my take as outlined above only holds if the new owners allow the current management to manage the business without undue interference and so on, unfortunately this is Naija...So I might be wrong

Manonamission:
Only the parent company (Etisalat) converted to equity. Other investors are not forthcoming. Mubadala wants out. Nigerian investors group probably don't have money for bailout. Banks are not interested in the equity option, hence the reason for the take over. They want their money back.

OBAGADAFFI:
Can banks run the Telecoms business well ? NO.

Access bank, might looking for a strategic investor to buy Etisalat .

Adenuga ? Hell no

Dangote probably.

Manonamission:
Only the parent company (Etisalat) converted to equity. Other investors are not forthcoming. Mubadala wants out. Nigerian investors group probably don't have money for bailout. Banks are not interested in the equity option, hence the reason for the take over. They want their money back.

fxuser:
Livestock
- 90 kobo support held for days
- SP above 50dma
- weekly RSI breaking to 3 yr high
- growing bids
- daily looks like ascending triangle
- needs to test recent high and brk with volume

dis:
not a fan of the liquidity behaviour

DeRuggedProf:
- The head is finally off the body. I cant shout.
- This Etisalat will make Access shareholders smile in the long run.
-Loans are not designed to make borrowers rich , ESPECIALLY by Access bank. A loan from Access is like a guaranteed Cardiac Arrest certificate.
Those who borrowed from access in the past are feeling me. Wigwe no dey hear stories...

ExLaidback:
Yeah I already stated that they'd be more interested in selling since they don't have the sector expertise to manage the coy

OBAGADAFFI:
From experience with CDMA coys, Banks don't have that expertise.

But nobody can tell me ETISALAT or Telecoms companies don't make profits, most of their incomes are usually diverted .

Ernest Ndukwe tried enforcing corporate governance when he was the NCC EVC.

The same man is a director in Access Bank. Ironic

http://www.accessbankplc.com/pages/about-us/board/Dr-Ernest-Ndukwe,-OFR.aspx

OBAGADAFFI:
From experience with CDMA coys, Banks don't have that expertise.

But nobody can tell me ETISALAT or Telecoms companies don't make profits, most of their incomes are usually diverted .

Ernest Ndukwe tried enforcing corporate governance when he was the NCC EVC.

The same man is a director in Access Bank. Ironic

http://www.accessbankplc.com/pages/about-us/board/Dr-Ernest-Ndukwe,-OFR.aspx

DeRuggedProf:
Fly don follow food enter Oven...

ExLaidback:
Well I can't say why but I can tell you for SURE that Etisalat posted losses for the last 3 or 4 consecutive years. It's privately owned so these figures are not in the public domain. The troubling thing however is that the losses were increasing considerably y-o-y. If the losses were coming down, it would have made a lil more sense to me cos there's a period required to break even after a business starts...Anyway that's it