EWI gets reprieve in Econet mobile row

The gnome of Econet Wireless still haunts Vmobile (formerly Econet Wireless Nigeria) and there appears to be a long road to reaching amicable settlement in Nigeria’s longest mobile row.

The Federal Court of Nigeria ruled last week that VMobile cannot change the company's shareholding structure until its legal dispute with Econet Wireless International (EWI) has been resolved.

Boardroom shuffling and new ownership structure would have to wait until the court decides otherwise for the mobile operator eager to increase its war chest with fresh investors fund.

The order was granted after EWI's lawyers submitted to the judge the agenda of a shareholders' meeting set for 25 January, which included matters that would affect its interests as a shareholder.

"EWI and VMobile reached an agreement in court that nothing would be done to alter the shareholding structure until such time as the arbitration hearing had gone before the Permanent Court of Arbitration (PCA) in The Hague," said EWI spokesman Zach Wazara quoted by South African news portal IT Web reported.

Wazara, former CEO of Econet Wireless Nigeria, told IT Edge that he believes the court processes would bring the much-sought for palliative for EWI in the series of lawsuits between the two parties.

"The PCA hearing is due to get under way from 31 January until 4 February, but VMobile's planned meeting contained details regarding a planned change in the company's shareholding, in contravention of the agreement we had reached earlier."

The PCA will rule on a shareholder dispute that was initially triggered as a result of a bid to take over the company by Vodacom SA, with EWI claiming it had preferential rights to the shares offered to the mobile operator.

He says the latest court order means VMobile cannot proceed with its intention to cancel the shareholder agreement and the memorandum and articles of association of the company, nor can it proceed with an offer of shares to third-party investors or the general public until the legal dispute with EWI has been resolved by the court.

(Additional Report: IT Web)
 

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