The Zambian High Court has dismissed a request by LAP GreenN, the Libyan telecoms investment vehicle, to freeze the 75% stake in mobile operator Zamtel that the Zambian government renationalised earlier this year.
LAP GreenN said in a statement that its…
The Zambian High Court has dismissed a request by LAP GreenN, the Libyan telecoms investment vehicle, to freeze the 75% stake in mobile operator Zamtel that the Zambian government renationalised earlier this year.
LAP GreenN said in a statement that its request had been intended to ensure that the government did nothing with the shares that the company still claims, until the Zamtel dispute has been settled in court.
A hearing on LAP GreenN’s full petition will be held on 9 July.
In this petition, LAP GreenN has asked for the 75% stake to be returned to it. If this does not happen, it said it would seek “market-value compensation” of US$480m. LAP GreenN, which is owned by the Libya-Africa Investment Portfolio (LAP) group, acquired a 75% stake in Zamtel from the government for US$257m in 2010.
In autumn 2011, a new government came into power in Zambia and began investigating commercial deals organised by its predecessor.
The Zambian justice minister reportedly concluded that the Zamtel deal had been fraudulent because LAPGreenN had failed pre-qualification tests and Zamtel had been undervalued.
LAP GreenN has since been contesting the sale reversal.
In its statement today, the company said: “Our preference is of course that Zamtel and our equity in it is returned to us, so that LAP GreenN can resume making its important contribution to the Zambian people and the Zambian economy, however no-one should be in any doubt that we will vigorously pursue our full legal rights and interests in Zamtel through the courts both in Zambia and internationally, until we have satisfaction.”
