The parent company of Etisalat Nigeria is considering a sale of its stake in Etisalat Nigeria after the local unit failed to pay a $1.2 billion loan it got from some banks.

However, it plans to start the sale process after the debt has been restructured, two sources told Reuters.

Etisalat is due to meet with Access, GT and Zenith banks on Tuesday or Wednesday to discuss the loan default, the source said, adding that the Abu Dhabi listed company was determined to resolve the loan issue and would look for a good price to sell its stake.

Ahmed Bin Ali, senior vice president at Etisalat, said Etisalat Group does not comment on rumours or market speculation. Etisalat Nigeria could not be reached for comment.