Minority sharholders threaten to block Zain-Bharti deal
19 Feb 2010
Two minority share holders of Zian in Africa, Econet Wireless Holdings Ltd and Broad Communications Ltd have objected to any transfer of the company's assets before it settles some long-sanding disputes, reports said today.
Econet Wireless Holdings Ltd, a South African telecommunications company, which holds 5 per cent of Zain Nigeria, is reported to have asked Zain to settle a long-standing dispute with it before it plans any transfer of assets in Nigeria.
Broad Communications Ltd, which holds a 14 per cent stake in Zain Nigeria, also want Zain to settle some legal cases before it thinks of any asset sale.
Econet wants a 2006 deal in which Celtel, now Zain, bought a controlling 65 per cent stake reversed while Broad, in a suit filed in the federal court in Lagos in 2009, is seeking an order restraining Zain from entering into any agreement for the sale or transfer of ownership of its shareholding in Celtel.
Broad, however, welcomed the exit of Zain as it was dissatisfied with the current management.
The two companies raised the issue after Bharti started exclusive talks to buy most of Zain's assets in Africa, including Zain Nigeria, in a deal that could be worth around $10.7 billion.
