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
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Smile owners, lenders agree on refinancing plan
Wednesday April 07 2021
Smile Uganda, which is a subsidiary of Smile Telecoms Holdings has operations within Kampala and other cities. PHOTO/COURTESY
Summary
The dispute had threatened close to $250m in loans due to Smile Telecoms held in both equity and commercial bank loans.
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Smile Telecoms Holdings shareholders have agreed on a refinancing plan that will see majority owner, Al Nahla Group, commit $51m in fresh capital.
The South African-based telecom, which has operations in Uganda, Tanzania, DR Congo and Nigeria had been threatened by a disagreement between two majority shareholders - Saudi Arabia’s Al Nahla Group and South Africa’s Public Investment Corporation - after they failed to agree on a put option, thus exposing the company to liquidation.
Internet provider reschedules debt repayment; injects $51 million today.ng - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from today.ng Daily Mail and Mail on Sunday newspapers.
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.