Libya’s telecoms investment vehicle LAP GreenN has filed court papers today in an attempt to challenge the Zambian government’s decision to renationalise mobile operator Zamtel.
Wafik Al-Shater, LAP GreenN’s chairman, stated: “LAP GreenN is…
Libya’s telecoms investment vehicle LAP GreenN has filed court papers today in an attempt to challenge the Zambian government’s decision to renationalise mobile operator Zamtel.
Wafik Al-Shater, LAP GreenN’s chairman, stated: “LAP GreenN is very clear that the seizure of our shareholding in Zamtel by the Zambian government was illegal and unconstitutional, and to the detriment of both Zamtel and its customers.”
The company added that it is claiming “financial compensation for the value of the asset at the time of seizure should the shareholding not be restored”, estimated at US$480m. It is also claiming for the losses it has suffered as a result of the seizure.
In 2010, LAP GreenN, owned by the Libya-Africa Investment Portfolio (LAP) group, acquired a 75% stake in Zamtel from the government, which owns the remaining 25%, for US$257m.
But the new Zambian government that came to power in autumn 2011 started inspecting some commercial deals organised by the previous administration.
Subsequently, justice minister Sebastian Zulu reportedly concluded that the Zamtel sale had been fraudulent and allegedly illegal because LAP GreenN had failed pre-qualification tests and Zamtel had been undervalued.
Since then, LAP GreenN has been contesting the sale reversal.
