Vodacom is to press ahead with arbitration proceedings immediately over its ongoing dispute with joint venture partner CWN in Congo.
The Vodafone-owned operator held a meeting with CWN, which holds a 49% stake in Vodacom DRC, in Johannesburg yesterday…
Vodacom is to press ahead with arbitration proceedings immediately over its ongoing dispute with joint venture partner CWN in Congo.
The Vodafone-owned operator held a meeting with CWN, which holds a 49% stake in Vodacom DRC, in Johannesburg yesterday but was unable to resolve the situation amicably.
One of the key issues that the two parties are unable to agree on is a capital restructuring to raise funds for future expansion.
Vodacom owns 51% of Vodacom DRC, which is in need of fresh funds to propel its expansion. Vodacom is believed to have proposed to CWN that the JV’s share capital is raised through the issue of new shares but CWN would be unlikely to be able to afford its own participation in the recapitalisation, thus weakening its shareholding.
“We are single-handedly supplying funding to Vodacom Congo at commercial terms that were agreed by CWN’s directors,” Bob Collymore, chief officer of corporate affairs, said in a previous statement.
“Any intended litigation on this issue is entirely without merit and a contrived attempt to force Vodacom to disproportionately fund further investment.”
