Smile Telecoms - founded by SA trade unionist turned businesswoman Irene Charnley - is being wound down. Investors including the IDC, PIC and the DBSA will receive no return on their investments except for a gratuity
Smile Telecoms aims to rebound through restructuring
Published by: Andrew Mizner at 25/05/2021 Last month’s restructuring should ease pressure on the Africa-focused telecoms company, with Afrexi.
Last month’s restructuring should ease pressure on the Africa-focused telecoms company, with Afreximbank playing a role as a leading lender.
Smile Telecoms, the London-headquartered mobile broadband provider which operates in Nigeria, Uganda and Tanzania, has restructured its finances, with help from lenders including a major African development bank.
The restructuring plan was approved by lenders on 1 April this year, with the company receiving USD 51 million in funding from majority shareholder
Al Nahla and rescheduling its debt repayment until after March next year. Al Nahla, a Saudi Arabian holding and investment company, provided the funding through a new Luxembourg-registere
Smile Telecoms, a Pan-African telecommunications group, announced on Thursday it has secured $51 million (R750 million) in
fresh capital to avert liquidation and
fund operations.
The company said its restructuring plan has been approved and agreed with the lenders.
Smile Telecoms said the debt restructuring plan sees an injection in fresh money funding from its majority shareholder, the Al Nahla, and rescheduling on debt repayment until post-March 2022.
Al Nahla, a Saudi Arabian-based company owns 49% of Smile. The PIC is a minority shareholder along with Renven Investment Holdings, a pan-African investment vehicle; Verene, representing Smile senior management and social entrepreneurs from South Africa; Telecom Investments, a Saudi Arabian investment company; Capitalworks, an alternative management company; the PIC; and Smile employees.
Lenders smile on Smile Telecoms with $51m injection Sign in with LinkedIn
3h | Alan Burkitt-Gray Lenders to troubled African operator Smile Telecoms Holdings have agreed to reschedule its debts for a year.
At the same time the company, registered in Mauritius but with a head office in the UK, has had an injection of US$51 million to keep it going.
This morning the company said: “This debt restructuring plan sees an injection in fresh money funding from Smile’s majority shareholder, the Al Nahla, and rescheduling on debt repayment until post-March 2022.”
According to Al Nahla’s website, it was founded in Saudi Arabia in 1996. Its main areas of interest are in the automotive, real estate, trading and investment businesses. Investment activities include telecoms, the site confirms.
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