‘Altech wants EWG wound up’

JOHANNESBURG – South Africa’s Allied Technologies wants to wind up African cell phone operator, Econet Wireless Global (EWG) less than nine months after taking a majority stake, because it fell out with other shareholders.

Altech, which bought 50 per cent and one share of EWG last November for US$70 million (N$448 million), said on Thursday it had applied to the High Court of Botswana to wind up EWG, whose management is also locked in shareholder disputes in Nigeria.Altech has also applied to either buy out original Econet shareholders, including the family of Chief Executive Strive Masiyiwa, or sell its own stake to them for US$100 million if its application to wind up the firm fails. “The reason for the application is that the relationship between Altech and the other shareholders of EWG has irretrievably broken down, which has resulted in EWG being unable to conduct its business in the manner contemplated by EWG’s shareholders,” Altech said in a statement.Altech declined to comment further and no one at Econet was immediately available.Altech, which has interests in telecoms, electronics and other techology ventures, said in November the deal would lead to the formation of a new company, Altech Econet Wireless (AEW).AEW included a disputed five per cent stake in Nigeria’s third-biggest cell phone operator, Vmobile, a majority stake in a New Zealand mobile operator, a satellite firm in the UK and an offshore cellular management company.South African cell phone operator Vodacom and Britain’s Virgin Mobile have bid for a controlling stake in Vmobile, but the offer has been put on ice until a verdict is reached on whether Econet, which helped found Vmobile, has pre-emptive rights to increase its stake.Econet’s largely dormant South African assets, mobile firm Econet Zimbabwe, shares in newly licensed start-up Econet Wireless Kenya and telecoms operations in Lesotho were excluded from the November deal.An Altech spokeswoman said the company needed to apply to the Botswana High Court because a major part of AEW’s business was located there.She declined to comment on whether the company would seek approval from other jurisdications.Econet won a licence to operate Kenya’s third mobile network in September 2003 after it bid US$27 million with local partners, but its launch has been delayed due to wrangles between shareholders.-Nampa-Reuters”The reason for the application is that the relationship between Altech and the other shareholders of EWG has irretrievably broken down, which has resulted in EWG being unable to conduct its business in the manner contemplated by EWG’s shareholders,” Altech said in a statement.Altech declined to comment further and no one at Econet was immediately available.Altech, which has interests in telecoms, electronics and other techology ventures, said in November the deal would lead to the formation of a new company, Altech Econet Wireless (AEW).AEW included a disputed five per cent stake in Nigeria’s third-biggest cell phone operator, Vmobile, a majority stake in a New Zealand mobile operator, a satellite firm in the UK and an offshore cellular management company.South African cell phone operator Vodacom and Britain’s Virgin Mobile have bid for a controlling stake in Vmobile, but the offer has been put on ice until a verdict is reached on whether Econet, which helped found Vmobile, has pre-emptive rights to increase its stake.Econet’s largely dormant South African assets, mobile firm Econet Zimbabwe, shares in newly licensed start-up Econet Wireless Kenya and telecoms operations in Lesotho were excluded from the November deal.An Altech spokeswoman said the company needed to apply to the Botswana High Court because a major part of AEW’s business was located there.She declined to comment on whether the company would seek approval from other jurisdications.Econet won a licence to operate Kenya’s third mobile network in September 2003 after it bid US$27 million with local partners, but its launch has been delayed due to wrangles between shareholders.-Nampa-Reuters