Wari slams Millicom u-turn over Senegal sale - Mobile World Live

Wari slams Millicom u-turn over Senegal sale

02 AUG 2017

Wari Group threatened legal action against Millicom over its decision to terminate an agreement between the two companies regarding the sale of Senegalese subsidiary Tigo.

Millicom, which operates in Africa and Latin America, said in a statement earlier this week it had struck a separate agreement to sell its business in Senegal to a consortium.

The move thus terminated an agreement made with Wari in February to sell the business for $129 million.

Millicom told Reuters in a statement Wari had failed to provide financing for the deal and the consortium, which includes Iliad founder Xavier Niel’s financing group NJJ, had presented an alternative offer.

However, Wari reportedly claimed it paid an initial deposit to acquire the subsidiary, as well as adhering to the “agreed timeline” for payments, with the next one due by 30 September.

In its own statement, cited by Reuters, the company said: “Wari stresses that this announcement is strongly denounced by the highest authorities in Senegal and that it will be the subject of legal proceedings if Milliicom persists in its unilateral decision.”

Tigo is the country’s second largest operator, behind French operator Orange.

Along with Niel’s NJJ, telecoms investment vehicle Sofima and Africa-based investment company Teyliom Group are vying to acquire the Senegalese subsidiary.

The deal price agreed was undisclosed by Millicom.


Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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