Bharti Airtel has announced that it has acquired Econet’s 4.2% stake in its Nigerian operating entity.
According to Bharti Airtel;
“Bharti Airtel International (Netherlands) BV through its wholly-owned subsidiary, has completed the acquisition of Econet Wireless Limited’s entire 4.2 per cent shareholding in Airtel Nigeria.”
“As a result, Airtel’s overall holding in Airtel Nigeria has increased to 83.25 per cent.
Bharti Airtel had acquired Zain’s telecom business in 2010 for $10.7 billion. But it ran into a dispute with Econet Wireless – a minority stakeholder in Zain Nigerian operations. Econet had argued that it had the first right of refusal before the sale was made to Zain since it had 5% shares in the joint venture. Econet took Airtel to court and the court in 2012, reinstated the 5% shares for Econet.
Early November, Airtel reported that Zain Telecom has agreed to pay Bharti Airtel $129 million to settle its various claims and disputes in Nigeria.
It also said a separate settlement has been reached between Airtel and Econet Wireless Limited, settling all claims and disputes between the two, including in Nigeria and Netherlands.
Econet Wireless was the first GSM company to go live in Nigeria. However the company had to leave Nigeria when shareholders in the Nigerian entity, Econet Wireless Nigeria were voted out of management and their management contract was cancelled.
