The chairman of Econet Wireless International (EWI) has said that claims that his company is not a shareholder in Econet Wireless Nigeria (EWN) are a "ludicrous act of desperation" by the board of that organisation.
This follows the naming of the arbitrators to preside over the arbitration process, in which EWI is claiming it had first option on $150 million worth of additional shares in EWN, which the Nigerian organisation instead offered to Vodacom SA.
"EWN`s assertion that we are no longer shareholders is very bizarre to say the least, although it appears to be nothing more than posturing ahead of the commencement of the arbitration process," says EWI spokesman, Kevin Kachidza.
"According to EWN, they have stripped their parent company of its shareholding and have changed the share register to reflect this."
He says that while the EWN board has made claims to the contrary, its board of directors do not have the legal authority to declare an existing shareholding is invalid, as Nigerian law states that the share register of a company cannot be altered without a court order, which has never been issued.
"EWI holds a share certificate certifying we own five million shares (5%) in EWN, which is dated 3 December 2001 and is signed by the chairman and the company secretary of EWN. It clearly states that the shares are fully paid," says EWI`s CEO, Strive Masiyiwa.
Masiyiwa also points to the fact that the Nigerian firm`s financial statements for the year ended 30 June 2003 - audited by international accounting firm PricewaterhouseCoopers - state that EWI is a major shareholder in the company.
"As late as 3 February 2004, the International Court of Arbitration acknowledged that EWI is a shareholder in EWN when it appointed an independent international panel to hear the matter of the EWN shareholders dispute," states Masiyiwa.
"EWN`s claims are therefore in contempt of the ruling of the International Court of Arbitration to proceed with arbitration on the matter."
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