MTN Settles Dispute with Guinean Government
Published on: 9th May 2011
Note -- this news article is more than a year old.
South Africa's MTN Group has agreed to make a payment of EUR15 million to the Guinean government to settle a dispute that had lead the government to seize the network.
In a statement, the government said that the payment represented 50% of the capital gain from MTN's acquisition of the local mobile network, Areeba in 2007.
The government had claimed that Areeba violated article 7 of their contract, after it signed a partnership agreement with MTN group and refused to pay 50% of the transaction.
MTN brought the local mobile network, Areeba in 2007 as part of the US$5.53 billion offer for Investcom, which had mobile phone operations in Africa and the Middle East.