An Iraqi court has dismissed a US$4.5bn lawsuit against the Kuwait-based Zain Group over its acquisition of local telco Iraqna from Egypt’s Orascom Telecom (now Global Telecom Holding) in 2007.
However, the unnamed claimants can make one final appeal,…
An Iraqi court has dismissed a US$4.5bn lawsuit against the Kuwait-based Zain Group over its acquisition of local telco Iraqna from Egypt’s Orascom Telecom (now Global Telecom Holding) in 2007.
However, the unnamed claimants can make one final appeal, Zain said in a stock exchange filing.
Zain agreed to buy Iraqna from Orascom in December 2007 for US$1.2bn. The Kuwait-listed operator then merged the business with its existing Iraqi unit, which had recently won a 15-year mobile licence from the government, to create Zain Iraq.
The claimants argued that the deal prevented their company from buying Iraqna itself, resulting in a US$4.5bn loss, Reuters reported. The news agency cited industry sources as saying the claimants are shareholders in Iraqi mobile operator Korek.
The claimants’ initial case was reportedly dismissed last July but they successfully appealed. Zain then appealed to a higher court which instructed the lower court to reconsider its verdict. The lower court reversed its original ruling, deciding in Zain’s favour, the Kuwaiti operator said.
The claimants reportedly have 30 days to file an appeal.
