Vodacom to fight lawsuit for sale of Congo unit (Africa)
Vodacom, a dominant wireless service provider in South Africa, may be facing legal action as it seeks to sell its stake in the Congo venture. As per reports, Alieu Conteh, Chairman and Founder, Congolese Wireless Network (CWN) SPRL, has said that the company’s lawyers have filed an application in a Kinhasa court to stop the sale, and that the Commercial Court will consider the merits of the case next week. He added that they will send a letter to all the main shareholders in an attempt to block the sale. Further, CWN has reportedly informed Vodacom that it would use its right of first refusal if it didn’t agree to terms of the sale.
Vodacom Congo has reportedly responded saying that the company needs capital to expand and deliver on the potential of the country. Further, continued delays, groundless accusations, and court action are utterly counterproductive and serve only to damage the future prospects of the business. Vodacom Congo, the third largest operator in the country had 4.2 million subscribers at the end of March. As per industry sources, the company has a subscriber base of 65 million people and a mobile penetration rate of 17 percent.