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Johannesburg - Vodacom’s joint venture partner in the
Democratic Republic of Congo has filed court papers to block Vodacom from
selling its majority stake in the unit, a spokesperson for the South African
company said on Friday.
Vodacom Group [JSE:VOD], a unit of Britian’s Vodafone, said
last year it had appointed investment bank Rothschild to “explore options” for
the business in the DRC, where it has been involved in a dispute with its
partner, Congolese Wireless Network.
“Vodacom has received court papers from CWN,” spokesperson
Richard Boorman said in a statement to Reuters, confirming an earlier report by
the Business Day newspaper. Boorman said he was unable to comment further on
the legal process.
Vodacom owns 51% of the unit, with the remainder held by
CWN. The two companies have been in arbitration after disagreeing over fees
from the joint venture.
Congolese Wireless Network chairman Alieu Conteh told Reuters last year that Vodacom Congo was worth more than $1.5bn, a valuation that Vodacom described as “ludicrous” without offering an alternative figure.
