Nigerian mobile operator Econet Wireless has issued a statement disputing the viability of Bharti Airtel’s acquisition of Zain Africa, which completed today.
Econet Wireless said that the dispute surrounding the ownership of the assets in Nigeria which…
Nigerian mobile operator Econet Wireless has issued a statement disputing the viability of Bharti Airtel’s acquisition of Zain Africa, which completed today.
Econet Wireless said that the dispute surrounding the ownership of the assets in Nigeria which form part of the transaction has not been resolved and that Econet is not party to any agreement between Bharti Airtel and Zain.
The operator states that the dispute over the ownership of Vee Networks, the majority of which was acquired by Zain – then known as Celtel – in 2006, has in fact not been resolved. The dispute remains the subject of international arbitration proceedings, before a Tribunal constituted under the United Nations Commission on International Trade Law (“UNCITRAL”) and is also being considered by the Lagos State High Court.
Econet representatives say that under a shareholder agreement, all shareholders had the right of first refusal in the event that the company was to be sold. Econet was allegedly denied this right, and if the tribunals judge in its favour, would be able to buy the shares it is owed at 2006 prices.
Law firms representing Zain and Bharti could not be reached for comment before press time.