|
|
|
|
|
Zain Dispute May Complicate Sale Of Africa Assets
Published Oct 12, 2009
|
Zain, Kuwait’s biggest phone operator faces an ownership battle with Econet in Nigeria that may complicate plans to sell a stake in the company, Bloomberg reports.
Back in June, Econet Wireless Group (EWG) started moves to block Zain’s sale of its interests in Zain Nigeria until ruling on a dispute over ownership of the company was passed.
In a statement, a spokesperson for Econet confirmed that following media reports that Zain was trying to sell its African operations, its lawyers, Freshfields of London, had since written to Zain’s lawyers reminding them that they could not offer for sale shares whose ownership is in dispute, and is the subject of litigation in a number of international jurisdictions, and in particular the United Nations Commission on International Trade Law arbitration.
Econet is claiming its pre-emption rights were breached when its predominantly Nigerian partners decided to sell their shares in V-Mobile to Zain in 2006.
The Nigerian unit is a key asset for Zain. In 2008, Zain generated about 21 percent of its total earnings before interest, tax, depreciation and amortization in Nigeria and about 22 percent of its total sales.
Nigeria is the fastest growing telecommunications market on the continent.
It has overtaken South Africa as the African country with the most phone users, with many people carrying multiple handsets because of unreliable services.
Posted by
VMD - [Virtual Marketing Department]
|
|
|
