Local company, Econet Wireless International (EWI) has filed an application in the Nigerian Federal High Court against Vodacom, alleging that the cellular giant has engaged in actions to "induce a breach of contract".
According to EWI CEO, Strive Masiyiwa, his company had an option to take up additional equity in Econet Wireless Nigeria, to the value of $150 million, which was accepted by the board of the Nigerian operation in May this year.
"The board was acting on a prior mandate by the shareholders, and despite this contract, Vodacom made a subsequent - and highly irregular - offer, which was identical in every respect to our original one, to purchase Econet Wireless Nigeria," says Masiyiwa.
"Thus we have been left with no option but to take Vodacom to court for inducing a breach of contract. Stakeholders in the company should be made aware of the highly irregular actions taken by it in order to gain access to the lucrative Nigerian market."
Masiyiwa claims that success against Vodacom will see EWI receive financial compensation based on the company`s losses due to the delays, profit loss and damage to its brand.
"We will obviously look for full compensation, and while we cannot quantify it in monetary terms right now, we certainly hope that the punishment will be sufficiently harsh to stop such a thing happening again."
Share
