Altech`s acquisition of a stake in Econet Wireless Group (EWG) is going ahead despite the rejection of Econet as an investor in Papua New Guinea`s network operator, Telikom PNG.
Last year Altech entered into a joint venture with EWG in relation to various telecommunication assets, of which Telikom PNG was one.
EWG was to buy 51% of Telikom PNG for $46 million.
However, Papua New Guinea prime minister Sir Michael Somare said last month that his country`s National Executive Council had decided not to proceed with the EWG deal.
Altech says EWG has taken legal advice and "intends to reserve its rights in regard to this matter".
In the meantime, the $30 million earmarked for the Telikom PNG deal is being held in a rand-denominated South African bank account in the name of EWG, while the entire rand interest receipts will accrue to Altech.
The indirect acquisition by EWG of the 14% in Mascom Wireless Botswana held by Econet Zimbabwe has been implemented in line with the agreement.
Despite the Papua New Guinea deal falling through, Altech says the integration of EWG group with Altech is progressing well.
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Econet in the dark
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