Millicom won a legal battle which confirmed it has full ownership of its subsidiary Tigo Tanzania, following a share holding dispute.
In a statement, Millicom said the Court of Appeal of Tanzania, the country’s highest court, ruled that Tigo Tanzania remains owned and controlled by the operator.
According to GSMA Intelligence, Tigo is the second largest mobile operator in Tanzania, with a 28 per cent market share (behind leader Vodacom on 32 per cent).
The legal dispute arose following an “improper filing of shareholder claims by a third party alleging to have acquired shares through proceedings”, which have now been quashed by the court of appeal, said Millicom.
Golden Globe International Services LTD and Quality Group LTD said it owned 99 per cent of MIC Tanzania LTD (the holding company of Tigo Tanzania), after claiming to buy 34,479 shares in 2014.
The court however said it had genuine grounds to oppose the claims, and rendered the share purchase by Golden Globe and Quality Group as null and void.
“The commercial register will now be corrected to show the Millicom group as the ultimate owner of 100 per cent of the shares in Tigo Tanzania,” added Millicom.
South African publication The Citizen said an IPO of Tigo Tanzania was now imminent following the court ruling. The operator initiated an IPO process on the Dar es Salaam Stock Exchange at the end of 2016 but has been unable to proceed due to its ownership problems.
The listing will be in line with a government act requiring telecoms firms to offload 25 per cent of their shares.