Econet Wireless seeks US$3.1 billion damages in ownership wrangle in Nigeria

Shares in Bharti Airtel Ltd fell as much as four per cent today after Econet Wireless said it is seeking at least US$3.1 billion in damages in a dispute over ownership of the leading Indian mobile carrier’s Nigerian unit.

Bharti said it had no notice or details of any action by Econet seeking damages, but termed claims “grossly untrue and misleading”.

“… All such baseless claims are bound to be fully rejected. We have full faith in the Nigerian legal system,” Bharti said in a statement February 22.

Bharti paid US$9 billion in 2010 to acquire the mobile operations of Kuwait’s Zain Group in 15 African countries, including 65 per cent of the Nigerian unit to become the world’s fifth-largest mobile operator by subscribers.

A Nigerian court ruled on January 30 that Bharti’s ownership of the unit was “null and void” because co-founder and five per cent shareholder Econet had not been consulted on the transfer.

Nigeria contributes about 9.5 per cent to Bharti’s consolidated operating profit.