Zain’s legal dispute with Nigerian assets might delay Bharti deal

www.WirelessFederation.com/news: The pending legal dispute over the ownership of Zain on its Nigerian assets might lead to the delay in the selling of the African assets by the company to Indian telco, Bharti Airtel. Econet Wireless Holdings and Zain have been undergoing a long dispute and the former has claimed a right of first refusal when a collection of shareholders sold their stakes to Zain in 2006.

5% of Vee Mobile which trades as Zain Nigeria is still owned by Econet and since the sale of the network first suggested back in 2003, it has been fighting attempts to bypass its claimed rights to buy out shareholders. In 2003 itself, due to Econet’s pressure, South Africa’s Vodacom retreat its decision to buy a controlling stake in the company.

After that, Delta State and First Bank along with various shareholders sold their stakes to Celtel Wireless which is now a Zain subsidiary, in September 2005 and since then the sale has been in dispute ever.