The 13 banks that raised $1.2billion loan for mobile
operator Etisalat Nigeria may press criminal charges against directors of
Mubadala Development Company of the United Arab Emirates (UAE).
This is the latest option the banks are considering to
recover the outstanding part of the facility.
It was gathered that the banks held a meeting at the weekend
to consider engaging a London-based
counsel to assemble a team of lawyers to press charges against Directors of
Mubadala for abdicating their contractual obligations.
A source close to the meeting said the banks explored the
legal option to save Etisalat Nigeria which they still see as a viable
business. They are also said to be interested in ensuring the continuity of
Etisalat Nigeria.
The source said: “The banks have a different position now.
The first thing considered at the meeting is the legal option to compel
Mubadala through a Mareva injunction to honour its obligations to the
consortium. This is because other than this loan crisis, Etisalat is a viable
business. The banks have access to theirs books and they can see that despite
the crisis, Etisalat’s business value has not diminished. That is why the banks
took that position that they are not interested in a takeover of the business.
They are in fact more sympathetic to the Nigerian investors led by Hakeem
Belo-Osagie and are willing to work with him to steady the ship and keep
Etisalat business going while searching for new investors.”
The source said the lenders also felt that there was no need
dissipating needless time and energy on the option of hostile takeover
considering that the law is sacrosanct on that. “They realised the licence is
not transferrable. So, they alternatively opted to pursue Mubadala for a
recovery of the outstanding sum of money from the loan. The banks are said to
be convinced of this option considering what they perceived to have been a
trend with Mubadala. In each of the country where Mubadala had exited, it left
behind burdens of unpaid loans,” the source added.
Another source close to one of the lenders who corroborated
the development, said: “The banks rose from their weekend meeting with a strong
resolve that Mubadala may have tried this trick with the wrong customers this
time around. Yes, I can confirm they will press charges.
A leading Investment Analyst who works as External
Consultant to the Central Bank of Nigeria (CBN), speaking on condition of
anonymity, has advocated a stronger involvement of the Federal Government at
the diplomatic, economic and trade relations levels as options to save Etisalat
Nigeria.
According to him, government needs to reach out to the Abu
Dhabi government to rein in the Directors of Mubadala and compel them to
respect a contractual loan obligation they entered into in Nigeria with the consortium
of banks. At the economic level, the government must provide all necessary
support under its “Ease of Doing Business” policy to new investors the Emerging
Markets Telecommunications Services’ team led by Hakeem Belo-Osagie may be
reaching out to. Key members of the nation’s Economic Management team such as
the Minister of Industry, Trade and Investment, Minister of Finance and the
Central Bank Governor can be directed to join the NCC to provide all necessary
concessions to enable the new investors make their decision and settle in
quickly,” he counseled.
“The second leg of the proposed economic intervention is for
the government to direct the Sovereign Wealth Fund to invest in Etisalat
considering its continued viability as a business. Telecom is a critical
national infrastructure that represents the backbone of business, economic
development and even national security. The intervention of the Sovereign
Wealth Fund will not only preserve the jobs of thousands of Nigerians directly
employed by Etisalat Nigeria but that of scores of other Nigerians indirectly
employed in the entire value chain of the Etisalat business,” he said.
0 comments:
Post a Comment