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Orange, Vodafone reportedly frontrunners to acquire troubled operator.
The crisis at Etisalat Nigeria deepened this week after CEO Matthew Willsher and CFO Wole Obasunloye resigned.
Their departures follow the resignation of chairman Hakeem Belo-Osagie last week, reported local news outlet Daily Post on Monday.
A separate report by Brandish, also on Monday, claimed that Orange and Vodafone lead the race to acquire 65% of the troubled operator.
Control of Etisalat Nigeria has been up in the air since June, when parent company, U.A.E.-based Etisalat, forfeited its stake in the operator after defaulting on a $1.2 billion (€1.04 billion) loan repayment.
Etisalat’s 65% holding – comprised of 40% ordinary shares and 25% preferred shares – was transferred to its lenders – a 13-strong group of Nigerian banks – after the parties failed to agree a debt restructuring plan.
Etisalat Nigeria initially missed the repayment in February, and negotiations with lenders started in March.
Sources cited by Brandish on Monday said that five companies have shown some interest in Etisalat Nigeria, but only Orange and Vodafone have indicated they are serious about acquiring it.
According to the report, talks are already at an advanced stage but, unsurprisingly, Etisalat Nigeria’s debt is proving a sticking point. Agreeing a workable repayment plan is understood to be top of the agenda.
