The Democratic Republic of Congo’s Supreme Court has suspended the sale of Vodacom’s stake in its Congolese unit.
The auction, which was scheduled for 3 June, was put on hold “pending the outcome of certain legal proceedings already…
The Democratic Republic of Congo’s Supreme Court has suspended the sale of Vodacom’s stake in its Congolese unit.
The auction, which was scheduled for 3 June, was put on hold “pending the outcome of certain legal proceedings already underway”, Vodacom said in a statement.
Pieter Uys, the CEO of South Africa’s Vodacom, had said days ago that the company would appeal a court decision about the sale of the DRC mobile subsidiary.
On 14 May, Vodacom, which holds a 51% stake in Vodacom DRC, was ordered to pay US$21m in consultant fees to Namemco Energy or face the sale of its shares in the unit by 3 June.
Namemco Energy had been previously hired by Vodacom to settle a shareholder dispute over funding and operational structure of the unit with Congolese Wireless Network, which owns the remaining 49% stake in the unit.
Uys said in a recent conference call that Vodacom would not allow the sale of the assets because it does not agree with the court findings.
