Bharti Airtel loses court case to Econet, appeals @ Supreme Court | $3billion

Bharti Airtel said on Thursday it will move the Supreme Court of Nigeria against a decision of the Court of Appeals in Lagos in a longstanding dispute with Econet Wireless over the ownership of the India telecom major's Nigerian unit.

Bharti Airtel is not satisfied with the ruling of the Court of Appeal and will lodge an appeal against that decision, it said in a statement. The ruling has no impact on the equity holding of Bharti Airtel or of the other shareholders in Airtel Nigeria, it added. According to media reports, the Court of Appeals in Lagos on Monday ruled that an International Tribunal had acted properly while ordering that the sale of a 65% stake in the Nigerian business unit by Celtel Nigeria to Zain of Kuwait was null and void, as it did not follow proper procedures, like offering Econet Wireless the first right of refusal since it was a shareholder. Bharti bought the Nigeria business of Zain in 2010 and inherited a legal battle which has been on since 2006 related to the Celtel-Zain deal.

While media reports said Econet would claim damages of more than $3 billion, Bharti said neither the Court of Appeals nor a court in Kaduna, which was dealing with a separate case, had determined any quantum of damages.

Econet had filed a claim in the Kaduna court in 2004, saying that it held a 5% in Airtel Nigeria. As per the Premium Times website, the court recently ruled that Bharti "should accept the reality that Econet Wireless was an existing minority shareholder in the company". Bharti has challenged this order as well in Nigeria's Supreme Court.

"These (disputed) shares in any case are held in an escrow account and do not affect Bharti Airtel's 79.06% in Airtel Nigeria," Airtel said. ecotimes