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Johannesburg - A Nigerian firm backed by private equity group Helios Investment Partners and South Africa’s Shanduka Group is suing Telkom [JSE:TKG] for at least $251m, a move that could complicate Telkom’s planned sale of its Nigerian unit.
According to court documents obtained by Reuters, Helios Towers Nigeria, which builds and rents towers used by mobile operators, is suing Telkom in the High Court of Lagos State, claiming it walked away from a 10-year rental agreement after just three years.
Helios Towers Nigeria is seeking $251m plus interest, and an injuction preventing Telkom from selling its Nigerian unit until the dispute is settled, the documents show. Telkom said in April it planned to sell part of money-losing unit Multi-Links for $52m to Visafone Communications.
A spokesperson for Multi-Links, Ijeoma Abazie, said there were no injunctions currently in place on any of the parties.
Multi-Links has filed a civil action against Helios in the Lagos court, claiming non-compliance with Nigerian law, she said.
A Telkom spokesperson declined to comment, as did a spokesperson for investment firm Shanduka.
Multi-Links, one of only four mobile operators using the CDMA technology platform in a market dominated by the rival GSM standard, has been a problem in recent years for Telkom, which itself is fighting to turn around its business.
Telkom shares ended 2.4% down at R36.80 on Monday, following a report on the suit by Britian’s Telegraph newspaper on Sunday.
London-based Helios is an Africa-focused private equity firm with more than $1bn in capital commitments.
Another firm run by the group, Helios Towers Africa, is backed by several major investors including George Soros and former US Secretary of State Madeline Albright. Shanduka Group is a black-owned South African investment firm.
According to court documents obtained by Reuters, Helios Towers Nigeria, which builds and rents towers used by mobile operators, is suing Telkom in the High Court of Lagos State, claiming it walked away from a 10-year rental agreement after just three years.
Helios Towers Nigeria is seeking $251m plus interest, and an injuction preventing Telkom from selling its Nigerian unit until the dispute is settled, the documents show. Telkom said in April it planned to sell part of money-losing unit Multi-Links for $52m to Visafone Communications.
A spokesperson for Multi-Links, Ijeoma Abazie, said there were no injunctions currently in place on any of the parties.
Multi-Links has filed a civil action against Helios in the Lagos court, claiming non-compliance with Nigerian law, she said.
A Telkom spokesperson declined to comment, as did a spokesperson for investment firm Shanduka.
Multi-Links, one of only four mobile operators using the CDMA technology platform in a market dominated by the rival GSM standard, has been a problem in recent years for Telkom, which itself is fighting to turn around its business.
Telkom shares ended 2.4% down at R36.80 on Monday, following a report on the suit by Britian’s Telegraph newspaper on Sunday.
London-based Helios is an Africa-focused private equity firm with more than $1bn in capital commitments.
Another firm run by the group, Helios Towers Africa, is backed by several major investors including George Soros and former US Secretary of State Madeline Albright. Shanduka Group is a black-owned South African investment firm.
