Bharti Airtel has lost a court case in Nigeria and potentially faces $3 billion in payout over a five per cent stake claimed by Econet Wireless in its Nigerian unit. Bharti Airtel plans to contest the decision of the Court of Appeals in Lagos in the Supreme Court of Nigeria.
The Court of Appeals in Lagos has ruled that Bharti Airtel failed to set aside the ruling of a lower court on disposal of some shares of Econet Wireless International.
The matter relates to a 2006 deal in which Celtel International bought a 65 per cent stake in Nigerian mobile operator, Vmobile, which was later acquired by Kuwait?s Zain, which in turn was acquired by Bharti Airtel in 2010.
In a latest development, the Court of Appeals in Lagos has supported the decision of an International Tribunal which stated that the Celtel Nigeria?s stake sale to Zain was null and void, as the deal was in violation of established processes. While finalising the deal, Celtel Nigeria overlooked one of the shareholders, Econet Wireless which had the first right of refusal.
