Airtel Gets $129 Million From Zain Telecom For Settling Disputes
Bharti Airtel had acquired Zain’s Africa business six years ago.
Bharti Airtel Ltd. on Thursday said Zain Telecom, the company whose African business it had acquired for $10.7 billion six years ago, will pay around $129 million for the settlement of its various claims and disputes in Nigeria.
Bharti Airtel International (Netherlands) BV, and Zain Telecom, have reached an agreement, pursuant to which Zain is to pay to Airtel approximately $129 million for the settlement of all of Airtel’s claims on account of the Nigeria Litigation, certain tax matters and associated legal costs.Airtel Statement
Under the terms of the 2010 share sale and purchase agreement, Zain had provided Airtel certain indemnities covering the Nigeria Litigation and for certain tax claims.
After acquiring Zain's telecom business, Airtel ran into dispute with Econet Wireless-- a minority stakeholder in Zain Telecom.
Bharti Airtel lost a court case in Nigeria and potentially faced $3 billion in payouts over a 5 percent stake claimed by Econet Wireless in its Nigerian unit. Airtel said that a settlement has been reached with Econet Wireless now.
"A separate settlement has been reached between Airtel and Econet Wireless Limited settling all claims, disputes whatsoever, between the two including in Nigeria and Netherlands. With these settlements, Airtel has closed several ongoing major litigations in Nigeria, UK and Netherlands," said India's largest telecom operator.
Airtel stock closed at flat at 309.55 on BSE.