Vodacom management contract 'a diversion`

Johannesburg, 24 Dec 2003

Strive Masiyiwa, CEO of Econet Wireless International (EWI) claims that Vodacom`s announcement that it has signed a management contract with Econet Wireless Nigeria (EWN) is nothing more than a diversionary tactic.

He believes that the announcement is designed to draw attention away from the cellular giant`s "failure to legally conclude the acquisition of a controlling interest in the company".

EWI is currently involved in litigation against Vodacom, after claiming that the cellular operator induced a breach of contract when it approached EWN to buy a controlling interest in the Nigerian company.

He says that the Annual General Meeting of EWN, held on 19 December, listed the acquisition of 51% shareholding by Vodacom and the signing of a share purchase agreement as agenda items, along with changing the name of the company to Vodacom Nigeria.

"When the meeting started shareholders were advised those items had been removed from the agenda. The announcement of the management contract is obviously in lieu of Vodacom being able to finalise the deal with EWN," says Masiyiwa.

"Vodacom should now openly admit that they cannot legally acquire an interest in EWN without violating the pre-emptive rights of EWI," said Masiyiwa.

EWI has taken the matter of the termination of their pre-existing management contract with EWN to international arbitration in the United Kingdom.

"The decision by Vodacom to sign an agreement which allows them to illegally use our intellectual property, including but not limited to the Econet brand name, is without precedence in international business," states Masiyiwa.