While it has previously been reported that SA-based Econet Wireless International (EWI) has negotiated an exit package with Econet Wireless Nigeria (EWN), this is actually not the case.
"Contrary to a recent Reuters story, EWI has not been in any negotiations with EWN about an exit package, we are, instead, waiting for the appointment of an arbitrator," says EWI`s CEO, Strive Masiyiwa.
"We have submitted our application to the Law Society for them to appoint an arbitrator; we expect the appointment to be made during January and a final decision to then be made in February."
He says this arbitration process is separate from the one in which EWI is seeking to enforce its rights of pre-emption as an existing shareholder, to obtain an additional $150 million worth of equity in the Nigerian operation, despite EWN`s attempts to sell this equity to Vodacom.
Masiyiwa says this arbitration process involves what EWI considers to be the irregular (and therefore invalid) cancellation of EWI`s management contract with EWN, which then entered into an interim management contract with Vodacom.
"One of the fundamental issues to be resolved by the arbitrator is compensation for the unlawful use of our intellectual property (IP)," he says.
"As everyone knows, the company in Nigeria is still called Econet and it is using Econet brands, products and services, as well as systems developed by Econet. Having purportedly cancelled the agreement, EWN was required in terms of that agreement to cease using our IP `forthwith`.
"Not only have they not done this, but they have unlawfully exposed that IP to one of our key competitors, which - according to experts that we have consulted - is considered a very serious issue under English law."
Masiyiwa says that in terms of the second arbitration process, which involves the shareholder dispute, EWI is expecting the International Court of Arbitration to announce the names of the three arbitrators either this week or early next week.
"Our lawyers believe the hearings will be set for February, and the ruling will be issued soon after. If the ruling is issued in favour of EWI, we will then be allotted our shares in the company and we will thus become the largest shareholder," he says.
"It will not be possible for Vodacom to buy shares in the company should a ruling be issued in our favour and we will also then cancel any management arrangements which EWN has made with Vodacom."
Related stories:
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Vodacom responds to Nigerian allegations
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