Econet Wireless Wins Again as International Tribunal Awards it Damages

Econet Wireless Limited has said it has come out victorious for a second time in less than a month in long-running legal cases to establish its ownership rights to shares in the Bharti Airtel operator in Nigeria after the international tribunal hearing the case awarded it damages, Nigeria CommunicationsWeek has learnt.
The company said that  “We are naturally pleased that we received very clear findings in our favour in both of these actions. As SingTel (part-owner of Bharti Airtel) has been forced to acknowledge in its latest Q3 results, both outcomes are clearly “unfavourable rulings”
In an up-beat start to the year, EWL has not only won its long-running battle in the Nigerian Federal High Court to confirm its 5% stake in Bharti Nigeria, but has also been victorious in an International Arbitration examining the deal by which Celtel Nigeria, now owned by Bharti, seized control of 65% of the Nigerian operator in 2006.
The International UNCITRAL Tribunal (comprising senior Nigerian and English lawyers) was said to have found multiple breaches of a shareholders’ agreement by both the selling shareholders and Celtel Nigeria, ordering them to pay damages/equitable compensation to Econet (in an amount to be determined in a further round of the arbitration).
In a statement Econet said: “We are naturally pleased that we received very clear findings in our favour in both of these actions. As SingTel (part-owner of Bharti Airtel) has been forced to acknowledge in its latest Q3 results, both outcomes are clearly “unfavourable rulings” from their perspective – but to Econet they represent a vindication of its long campaign for restoration of its rights in Nigeria, and for compensation for loss of a controlling stake which has since been sold to Bharti for a premium of several billion dollars.”
It would be recalled that a as a Federal High Court in Lagos had late January this year ruled that the Bharti Airtel should reinstate EWL’s five percent shares in the company.
It also ordered Airtel Nigeria to revert to its former name, Econet Wireless Limited.
Econet Wireless, an early investor in the company, is an international company domiciled in the United Kingdom.

The company had opposed Zain’s decision to sell the Nigerian business to Bharti Airtel, claiming its right of first refusal.
Zain, however, went ahead to sell its African mobile business including Nigeria to Bharti in 2010 for $10.7 billion.
According to the summary of the judgement delivered by the Justice Shuaib, Econet is a shareholder of Bharti Airtel Nigeria Limited and holds five per cent of the issued shares of the company.
The Court, therefore, ordered that all actions, and resolutions taken by the company, since October 2003, at which Econet was entitled to be notified, and to participate in, as a shareholder, but was prohibited, were null and void
This, according to the court, includes decisions to sell shares, issue shares, and transfer shares to third parties.
Airtel Networks Limited has filed an appeal against the Federal High Court ruling which ordered it to restore the interest of Econet Wireless Limited (EWL) in the company.
In a statement, the company said: “In the light of the judgment by the Federal High Court of Nigeria regarding Econet Wireless Limited’s (EWL) claim to the ownership of five per cent equity in Airtel Networks Limited (Airtel Nigeria), an appeal against the said judgment has been filed by Airtel Nigeria. The Company abides by and has full confidence in the law of the land, and believes the Appeal Court will determine the appeal on its merits.
“In addition, the judgment will have no impact on the equity holding of other shareholders in Airtel Nigeria. We wish to assure our customers, employees and business partners that the ruling will in no way affect operations or the company’s ability to fulfill obligations to its stakeholders, the statement said.”