(Ecofin Agency) - Orange and Vodafone Group, amongst other potential buyers, have showed strong interest in acquiring Etisalat Nigeria’s 65% stake.

Including the two telephone operators, more than five companies have showed interest in purchasing the shares of Etisalat Nigeria. This is after talks to restructure a $1.2 billion loan failed prompting the major foreign shareholder, Etisalat Group, to exit the Nigerian telecoms unit. This was followed by Abu Dhabi investment fund, Mubadala.

However, all parties have been reported to be intensifying efforts to fast track talks in a bid to reduce any collateral damage that may impact future owners of the business. In this framework, the lenders have promised to work out a repayment plan which would favor the potential buyers.

Once all the stages have been completed, whichever company emerges the successful buyer of the stakes will have to rebrand the telecom network, although this may also take up a certain amount of their capital in the first year. This is also being discussed.

Sources from Etisalat Nigeria on Monday told Reuters that the president of the Nigerian operator, Hakeem Belo-Osagie (photo), has also resigned. “Hakeem had been negotiating hard but it wasn't the optimal solution so he had to resign. The biggest mistake the company made was taking a loan in dollars. It sounded like a good idea at first,” the sources said.

Etisalat Nigeria is the biggest victim of dollar shortages currently faced Nigeria due to lower oil prices and economic recession. This had made the company struggle to make repayments to lenders and suppliers.

Anita Fatunji