Share

Telkom and Blue Label settle dispute

Johannesburg - A dispute dating back to Telkom’s failed Nigerian telecoms venture Multi-Links has been settled.

Telkom bought 75% of code division multiple access (CDMA) operator Multi-Links in 2007 for $280m. Almost two years later, the South African telecoms company then bought out the balance for another $130m.

Multi-Links, though, proved to be a loss-making failure, and Telkom sold the company in October 2011.

During Telkom’s brief venture in Nigeria, an agreement was signed with Blue Label subsidiary Africa Prepaid Services Nigeria (APSN) to distribute Multi-Links’ products and services in the West African country.

But after Multi-Links’ failure in Nigeria, the Blue Label subsidiary claimed an amount of $457m following the termination of the deal. And in June 2011, APSN launched arbitration proceedings against Multi-Links

Telkom and Multi-Links then obtained a stay of the arbitration proceedings and launched legal action against Blue Label and Africa Prepaid Services, which is the holding company of APSN.

This was followed by Multi-Links then counter-claiming to the tune of $123m.

This arbitration also targeted individuals, such as Mthunzi Mdwaba and Thami Msimango, for payment of $528m and $196m respectively.

Africa Prepaid Services subsequently counterclaimed against Telkom and Multi-Links for $457m.

But the dispute is now water under the bridge, according to Telkom.

“The arbitration proceedings between a Blue Label subsidiary, Africa Prepaid Services Nigeria Limited (‘APSN’) and the former subsidiary of Telkom, Multi-Links Telecommunications Limited (‘Multi-Links’) has been settled,” Telkom told shareholders in a Sens announcement.

“The litigation action in the High Court of South Africa between Telkom and Multi-Links, on the one hand, and Blue Label, Africa Prepaid Services (Pty) Ltd, APSN and certain individuals, on the other, has been settled,” read the Sens announcement.

“In terms of the Settlement Agreement all claims and counterclaims have been withdrawn and all of the parties have agreed that they will have no further claims against one another arising out of the disputes forming the subject of both the arbitration proceedings and the action, including any claims for costs,” noted the statement.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.96
-0.3%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.48
-0.1%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
896.95
-1.0%
Palladium
1,000.11
-0.2%
Gold
2,194.20
-0.0%
Silver
24.51
-0.6%
Brent-ruolie
86.09
-0.2%
Top 40
68,007
+0.5%
All Share
74,221
+0.4%
Resource 10
56,323
+1.2%
Industrial 25
103,552
+0.3%
Financial 15
16,559
+0.2%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders